Google Answers: Accounting: Depreciation of goods traded for services

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Q: Accounting: Depreciation of goods traded for services ( No Answer, 1 Comment )

Question

Subject: Accounting: Depreciation of goods traded for services
Category: Business and Money > Accounting
Asked by: f1nd3r-ga
List Price: $10.00

Posted: 23 Aug 2006 15:29 PDT
Expires: 22 Sep 2006 15:29 PDT
Question ID: 758874

If I get a piece of business equipment in exchange for a service I
provide (instead of money). And I use that equipment as a business
asset. How do I treat that equipment on the books for tax purposes?
Can it be depreciated and Should it be? If so, how should it be
valued?

Answer

There is no answer at this time.

Comments

Subject: Re: Accounting: Depreciation of goods traded for services
From: abezon-ga on 28 Aug 2006 13:06 PDT

You declare income from business equal to the equipment's fair market
value (likely agreed upon by you & the other party). Your basis for
depreciation/sec. 179 purposes is the amount you declare as income.

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