returns or allowances for financial services

[Wadsworth2016]

I am a self-employed loan broker. From time to time, I gave allowances to customers who did refinance with me. This usually happens when I am competing in business with competitors. A few hundred or a few thousand dollars of allowance or discount on the loan fees can help me win the business that would otherwise be lost due to severe market competition.  

https://www.irsvideos.gov/Business/SmallBusinessWeek/virtualworkshop/Lesson2#:~:text=Returns%20and%2....

IRS said this "Individuals who don't make or buy products for resale as part of their business don't have returns or allowances to deduct from gross sales."

How do I report these allowances as business expenses in my tax?

[Critter-3]

If you give a discount on your fees you simply have less income to report.  So your bookkeeping should reflect this reduced sale price/commission.  Line 1 of the Sch C will report the reduced income the same way a store will only ring in the sale price of an item ... your reduced fees is the same as any other store  selling at a reduced price. 

[Wadsworth2016]

Thank you for your response.

Let me clarify the situation:

Let's use some numbers in an example:

The bank charges my customer fees $2000.00. After the loan transaction is done, I am a broker who receives the commission of $5000.00 from the bank. I then paid my customer $2000.00 as an incentive to win the business.

In this case, the bank will issue a 1099 form showing $5000.00 as my income. However, my net income from this case is only $3000.00 

How do I report the $2000.00 expense in my tax?