If you are required to make a purchase and then allowed the return it, you are not required to keep it. Therefore, you can not deduct the cost if you decide to keep it.
Suppose you accept a $20 shop at the large big-box electronics store. You are required to make a purchase of at least $3 and you are not allowed to return it. It is a flat fee shop without reimbursement. On Schedule C, you report the full $20 as income. The $3 required purchase is reported as a business expense on Schedule C.
Suppose you go to the Multiple Fellows' Burger Joint. There is a $20 (bonused) shop fee and a reimbursement of $14.20. You are required to purchase a burger, fries, and drink and with sales tax, the total cost of the food comes to $15.17. There are two approaches to this, and both have proponents on this Forum. I use method A (below). Others use Method B (below). The net effect is the same.
Method A: Report a total of $34.20 ($20 + $14.20) revenue and business expense of $15.17. Your net revenue is $19.03
Method B: Report $20.00 of revenue and unreimbursed business expense of $0.97. Your net revenue is $19.03
@johnb974 wrote:
There is no reimbursement, only a $50 fee you're paid.
Shopping Southeast Pennsylvania, Delaware above the canal, and South Jersey since 2008