Deductions & credits

Here's a thought for my expert colleagues.

 

If the Vine member receives free items but pays income tax on the value/selling price, they have a cost basis in the item.  If the business then sold the item, doesn't that create a deductible loss?  For example, you get a $500 TV to review, and you get a 1099 and pay income tax on the $500, so you have a $500 cost basis.  If the "business" later sells the TV for $250, isn't that a deductible loss?  Wouldn't the business show a net profit of $250 instead of $500?  Or am I missing something?