You were reimbursed for your time gas etc. Which I assume you cataloged as an expense. Now you have been reimbursed and that offsets. Do what you want, people improperly file tax returns all the time, doesn't mean the IRS will agree if they happen to audit you. Let us know what your accountant says. You can't write of an expense, get reimbursed and still claim that expense, so the only way around not claiming that income would be if you didn't write off any expenses to begin with for this deal.