This is a question about federal income tax in the United States.
I am an independent contractor/sole proprietor in the field of software development. Projects I work on sometimes require me to purchase computer hardware or software which I report as business expenses on my personal income taxes.
A client indicated they would need me to have a particular piece of hardware, so I bought it, opened it, and set it up. The next day, the client changed their plans and I no longer needed the piece of hardware, so I returned it to the store I had purchased it from. They charged me a restocking fee for returning the item because I had opened it.
Had I kept the piece of hardware, it would have qualified as a business expense. Does the stocking fee for returning the item count as a business expense, or would it not qualify?