I am a self-employed loan broker. From time to time, I gave allowances to customers who did refinance with me. This usually happens when I am competing in business with competitors. A few hundred or a few thousand dollars of allowance or discount on the loan fees can help me win the business that would otherwise be lost due to severe market competition.
https://www.irsvideos.gov/Business/SmallBusinessWeek/virtualworkshop/Lesson2#:~:text=Returns%20and%2....
IRS said this "Individuals who don't make or buy products for resale as part of their business don't have returns or allowances to deduct from gross sales."
How do I report these allowances as business expenses in my tax?
