I am trying to file my U.S. joint tax return for year 2018 and I have a question. My wife was running an Airbnb rental business for which the 1099 was reported to the IRS by Airbnb in the amount of about $40,000. She says she paid total of $7,000 for a cleaning guy over the course of the year. She did not give a 1099 to the guy and she paid cash.
My question is: can we file this as an expense in our tax return even though it is a significant amount for which I have no paper trail?