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?

  • 3
    $7000 is above the threshold where issuing a 1099 (and filing a copy with the IRS) becomes mandatory – Ben Voigt Oct 15 '19 at 20:27
  • Can she not go find the guy and get him to give her receipts? Or will that get him in trouble with the taxman? – DJClayworth Oct 16 '19 at 2:21
  • Some relevant reading for her: irs.gov/businesses/small-businesses-self-employed/… – dwizum Oct 16 '19 at 13:08
  • 1
    If a service demands cash and gives no receipt, you know that they are cheating on their taxes. So don't be surprised later, when you end up paying their taxes. – Ray Butterworth Oct 16 '19 at 13:08

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