@carburn wrote:
Ah, to the original question this thread was about:
"I've started doing fashion related item (i.e purses and shoes) reviews on Youtube.."
What section under Schedule C expenses would you list a deduction for products/clothing related to your YouTube business?
That's tricky and is going to be an audit risk.
If you are not in the business of selling the clothing items, then they are not inventory. For a reviewer, they would be supplies. However, if the items are then converted to personal use, you run a real risk at audit because you can't use your business as an excuse to buy personal items and get a write-off. You really shouldn't deduct them as business expenses in that case.
If you sell the items after reviewing them, that is business income. If you deduct $100 for the purchase of a pair of shoes, and deduct $100 as a business expense, and then you sell them used for $50, that $50 is business income.
