No. Cannot depreciate these items. You are not purchasing these items. These items are being used in lieu of cash for a service.
In order to depreciate an item, the following must apply
- It must be property you own.
- It must be used in your business or income-producing activity.
- It must have a determinable useful life.
- It must be expected to last more than 1 year.
Although you do OWN the property, it is not income producing property or used in business. This would be something like a computer or car or building or tools and machinery that you need in order to operate your business.
Your description of how it loses so much value as soon as you open it makes it seem as though it does not have a life expectancy of more than a year and it does not have a determinable useful life. These items will strictly be considered income.
This income will be reported on Schedule C which is part of your overall tax return. This also means you will be subject to SE Tax. If you did not pay Self Employment (SE) Taxes in 2024, and if you plan to do this again in 2025, it may be a good idea to make quarterly estimated payments to cover your SE taxes of 15.3% and avoid penalties.
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