Free sample received

[gordslade]

Are free items received taxed?

[Coleen3 · Accepted solution]

Usually, no. If someone gives you a gift, or someone gives you merchandise to encourage you to buy from them, it is not. If a bank give your merchandise for opening an account, or you win a prize or lottery, then yes, it is. If this was not one of the circumstances, let me know.

[gordslade]

What if a fee sample is given in exchange for a review of the item (what I liked or didn't like about it or the service) ?

[Coleen3]

Is it like a mystery shopper? Mystery shoppers pay taxes on the income.

[gordslade]

I received an item for offering my honest opinion of an item by writing an online review on their website. ( a few hundred dollar item).   However, they made me agree that I can't sell, donate or transfer item to anyone else and the supplier retains the right to ask for the item to be returned or destroyed for up to six months.  After six months, if they don't request it returned, the item is officially mine to keep.  Since there is a cost of time and material to review the item, and I can't ever sell it, donate or give it away, I'm not sure how this would be treated from a tax perspective?  

[Coleen3]

If it is not yours to keep, it isn't taxable.

[gordslade]

Thanks for the great responses !   Since more than six months had elapsed after receiving the new item sample (new marketing test item requirement), It technically became mine to keep at the end of 2018.  Given all the other restrictions (for private use only - can't sell, donate or transfer ownership) of the item, I'm not sure this qualifies as ownership / income gain?   

[Coleen3]

Not taxable.