If you receive a gift card and use that gift card to purchase inventory for your small business, can you treat these purchases as deductible expenses?

[daveuris2002]

I receive gift cards occasionally that I in turn use to purchase inventory for my small business.  I do not pay for these gift cards, but I do use their value to buy items that I later sell for my business. If, for example, I receive a $100 gift card that I use to buy $100 of inventory, can I deduct this $100 as a business expense (despite the fact that the gift card was given to me for free)?

[GiseleD]

The gift card is essentially the same as cash, so you can deduct business purchases made with it. It's no different than a family member giving you $100 for a personal gift, and then you using the $100 to buy something for the business.