topic deduct rental car expense for young adult when mother is a driver in Deductions & credits

deduct rental car expense for young adult when mother is a driver

GreenApple123 — Sun, 02 Feb 2020 22:34:51 GMT

My daughter is a performing artist (21 years old). Some of the locations she travels to does not have direct airport nearby (sometimes it will take 3 hours drive). As she does not have a driver's license yet plus she need to reach age 26 before she can rent a car, her mother usually travels with her and rent a car in her mother's name and then drive her to different destinations.

My question is: can my daughter deduct her mother's travel expenses (airfare, rental car, and/or meals) when traveling with her during her performing tour?

Re: deduct rental car expense for young adult when mother is a driver

ColeenD3 — Sun, 02 Feb 2020 22:53:23 GMT

Unfortunately, no, not unless she herself pays them.

Re: deduct rental car expense for young adult when mother is a driver

GreenApple123 — Sun, 02 Feb 2020 23:02:31 GMT

Thanks for your reply.

What about only the car rental expense? Without a rental car, she cannot go to the destination. And she cannot rent a car in her name (under 26)?

Re: deduct rental car expense for young adult when mother is a driver

VictorW9 — Sun, 02 Feb 2020 23:08:20 GMT

Is the young adult being compensated with a W2. If that's the case, then there is no deduction for the cost of commuting to work. If the young adult is an independent contractor, then there is a way for him or her to take a deduction for car expenses.

Re: deduct rental car expense for young adult when mother is a driver

GreenApple123 — Sun, 02 Feb 2020 23:30:06 GMT

Thanks again for your help.

My daughter is an independent contractor using Schedule C (she is a performing violinist). She has an agent and the agent firm gives her 1099 each year (ie, presenters pays the agent firm, then, agent firm takes away 20% commission and sent her a check. And at the end of the year, the agent firm sent her a 1099).

For cities not easily accessible for commercial airport, my daughter would buy the airline tickets for both her and her mother. Hotels are generally covered by presenters. My daughters pay for the meals. But for rental car, since she is under 26 and not allowed to rent a car, her mother would pay the rental car and drives her to the destination cities. Please guides me as to how to proceed and do the right thing.

Much appreciated.

Re: deduct rental car expense for young adult when mother is a driver

VictorW9 — Sun, 02 Feb 2020 23:54:21 GMT

You're welcome

Re: deduct rental car expense for young adult when mother is a driver

GreenApple123 — Mon, 03 Feb 2020 00:26:14 GMT

I guess I still need help with the following questions (with the situation describe above):

-My daughter has paid for both airfare tickets, can she deduct her mother's portion (on Schedule C)?

-My daughter has paid for both meals during travel, can she deduct her mother's meal portion?

-My wife pays for the rental car, can my daughter deduct the rental car expense? If not, if my daughter pays for the rental car while her mother drives the car (not sure if this is acceptable to the rental car company), then, is the rental car can be deducted?

Thanks

Re: deduct rental car expense for young adult when mother is a driver

VictorW9 — Mon, 03 Feb 2020 00:54:27 GMT

It will depend whether her mother was accompanying her because of - (1) She's underaged to be allowed to travel by herself and her mother had to accompany her so she can perform. Or, her mother was an integral part of her team that she needs around for her to perform. Also, it will be a good idea to have records showing her mother was reimbursed for the car rental. The meals and the air tickets can be deducted as necessary business expenses in schedule C.