I don't think that there is any tax difference between you as an individual and you as a Schedule C sole proprietor. You don't need a bank account or EIN to operator as a sole prop. There is no legal difference. If the item is given to you and you use it as a sole prop, it is being used in the business and could be treated as being given to the business.
A corporation or LLC would be different (not sure about disregarded entities like single-member LLCs).
@JulieS love the pub quote, but when it says you can only deduct what the product "cost you" does it mean purchase cost or basis? Does the fact that the receipt of the item is taxable income increase one's basis in the item? perhaps we need actual law and not just a publication.
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