TaxGuyBill
Level 15
07-12-2020
08:41 PM
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I am assuming she is a cash-basis taxpayer.
I think you need to look at the terms of her contract with the clients. Did the clients actually pay her for her services and the trip? That would be taxable in 2019. Or did they give her a refundable deposit on the trip? That would be taxable when the deposit is applied to the expense and/or is no longer refundable.