@RobertB4444 wrote:
Using the product up doesn't create a tax deduction any more than wearing your clothes does. You use stuff you buy.
Even if the full use of said product was necessary to be able to write the review? Wouldn't that mean that someone could have a loss as a result? For example, if a $10 product (as listed on the 1099NEC) is gone/used up entirely without any benefit to the reviewer and a review needs to be written, would that not mean they lost $10 of value? Basically, what I'm trying to figure out is how this would be different from other deductions. For example, if the review were to be submitted via regular mail, we'd be able to deduct the cost of the paper, printer ink, stamp, and envelope, would we not? How is this different if the use of the product was entirely for the purpose of delivering the service (writing the review)?
Another question, if I may: You mentioned taking products into inventory, putting them up for sale, and that the inventory value can then be set the same as the purchase value.
Since Amazon dictates that members of the Vine program cannot sell their item within the first 6 months of ownership, it feels reasonable to assume there is a loss in value, even more when the item was used in part for a review.
Am I correct to assume that by doing so, it means I could sell the items after 6 months at a loss, and therefore claim the loss on my return? For example, on a $10 item, I would pay the necessary income related taxes. After 6 months, I place it into inventory at a value of $10 and put it up for sale at a reduced price since it's no longer new. If I then sell the item for $5 (or even dispose of it, if it doesn't get sold), I could deduct the loss (and if sold, I'd have to pay tax over the sale price as well). Is that somewhat correct?
I'm sorry if my questions seem a bit snarky, I'm definitely not trying to be. I'm merely trying to get a good idea of what I can and cannot do.
