How can I track non-deductible donated business services?

Question

My husband and I have a photography business. He sometimes shoots an event for a business as a courtesy. I know his time is not tax-deductible, but we would like to track the value of the services. If I create an invoice for the time given, how can I zero it out without messing up our books?

NotACPA · Answer

First thought, without actually trying in my own file … how about creating a "courtesy" Business Expense category … and then showing the "income" for the invoice as coming from that same category … which will zero it out?

RalphC · Answer

Simply, I would create spending categories that have no Tax Line Item defined.