Who can deduct rental payments

[campbro]

My daughter will be filing  a schedule C for her hair stylist business in 2023. She pays weekly rent for her loft and I've been sending her the weekly payments via Venmo . The loft owner deducts the weekly rent from her LLC checking account.  When she files her schedule C for listing income and expenses, can she deduct the rental payments?

[Deepp]

LLC would be considered as a disregarded entity for tax purpose, if she is the sole owner. She would be eligible to deduct the rental paid on her tax return. Sound like you are gifting her the money? 

[campbro]

Yes. I am gifting her the weekly payments

[Deepp]

Thank you.

You can exclude, in 2023, up to $17,000 for gifting and up to  $34,000 between you and your spouse without having to worry about paying the federal gift tax.