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