Well any deduction you would like to take would require you to claim it as business income, not hobby.
This is a question that has been bothering me for some time. So we receive an item with an ETV of $100, which goes on our 1099-NEC as $100. At some point in the future we decide to sell this item, which will almost certainly be less than $100. If we are treating vine like a real business venture where we have a stream of products flowing in that we intend to eventually sell, then wouldn't the act of selling at a lower price generate a loss? I am probably either missing something crucial or have a simplistic understanding of tax code.
There is also a depreciation that happens from the services that we are providing. We have to use the product to review it, which in turn depreciates the value of that product. So what we are left with after providing our services is not the ETV that Amazon is reporting, it's something much less. So it does appear on paper that we are making all this revenue from participating in the Vine program, but the reality is we are left with used products that may or may not function as intended. I lost count of how many items I've ordered that turned out to be a bust, and we cannot return it, we have to eat it. Maybe it could be deducted, would have to file as a business to do so, and I am out of my league here, and probably turbo tax's as well. 2024 is going to be a fun year.
