'Ivanka is worried that her promising political career is in jeopardy and she's doing whatever she can to save her reputation,' the source says.
But President Trump was up in arms about Ivanka's decision.
'He said it's an insult that she would even want to engage with the crooks that are trying to bring him down,' says the insider, adding that Trump said the family must stand together and put on a united front.
'The president told his daughter that her presence at the inauguration will cost her thousands of supporters and would be the worst decision she could ever make,' they say.
Ivanka was convinced that by attending Biden's inauguration she would come across as 'being a good sport and will gain future supporters,' the source says.
'She said she has to protect her own political aspirations and isn't about to muck it all up by attending her dad's 2024 campaign kick-off which is set for the same day. She's leaving that for her dad and Don Jr.'
Another White House source has denied that she plans to attend the inauguration.