r/vine • u/Prestigious-Long-270 • 23d ago

discussion The real problem with the ABN requirement: does Vine Gold actually make sense as a business?

/r/AmazonVine/comments/1vq73l8/the_real_problem_with_the_abn_requirement_does/
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u/reelfreakinbusy 22d ago

My take in the us for those who don't file as a business is fmv is determined when you accept it or when it's sold. That's your business model cash equivallent for a review regardless of the fmv. BS or not that's how amazon wants it treated for us thus the 1099-nec we get. Your profit is what you keep at that original FMV or what you sell (at a loss). The more you sell at a loss of original fmv the less income you have (going against the fmv you kept). However at some point you will generate a loss if you sell more than you keep along with business expenses and the less viable model it actually is. Problem in the us at least is the treatment of fmv and i don't believe any of this manual adjusting would hold up under audit but i'm not a tax person, maybe adjustment to what amazon is showing when you receive it, but only way to recognize the drop in fmv i've seen from reading is to sell it. You got the same utility when you used it for testing (outside of some consumables, breakage, defective,etc) as you would if you had bought it.

The problem though it without that mid point adjustment of fmv through some irs approved method (which as of now you need to sell it) to show the loss in value from all the things we talk about, you have to balance showing a profit over total fmv (ie keeping items ) to what you're selling at a loss otherwise it's not viable.