All of the products that you are receiving from Vine are being treated as though Amazon had paid you cash and with your disposable income you chose to purchase their products.
The only way to take the products into inventory is to actively set them up for sale. Then the inventory value could be the same as the purchase value.
If you received a defective product and could not exchange it or receive a credit to your account for it then you should absolutely deduct it from your income. Create an expense for "defective product received" or something like that.
Using the product up doesn't create a tax deduction any more than wearing your clothes does. You use stuff you buy.
@mynameismynameandonlymyname
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
