Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Apr 12, 2024 8:33:13 AM

Business travel expense paid by others

My daughter is a sole proprietor with a small business that sells handmade items and other accessories through online channels and at "craft fair" type markets. Her largest revenue producer is a Christmas market in a large metropolitan area 50 miles from her home. This market runs for 15 days in a 24 day period between Thanksgiving and Christmas.

 

My wife and I travel to the market city and rent a small apartment during the market period solely to support her business by storing inventory close to the market and allowing us to be close so we can help staff the market booth.  When the market is finished we fly home.  We are not compensated for working her booth.  This is an expense solely to support her business but we pay for the rental expense.

 

Can she deduct the expense of the lodging we rent while working her booth for free as business travel expense on her schedule C for this business? 

0 1 2468
1 Replies
Expert Alumni
Apr 12, 2024 8:34:58 AM

No.  She cannot deduct a business expense that she does not pay for.