I am a direct seller. where do I record items I gave to party guests and hostesses? Gift with purchase things?

[mgo-glassngems]

If you are filing a scehdule C with your federal return, those expenses could be classified as promotional...see below.

ADVERTISING (line 😎 - advertising and promotional costs like print or media ads, business cards, mailers, brochures, wavers out front, signs, pens and give-away items with the company name, samples or freebies to promote business. Include also a sponsorship, like buying an ad in a high school sports program to promote the business.