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#2
04-15-2004, 07:34 AM
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 Re: Can you depreciate equipment accepted as compensation? Rich Carreiro wrote: - quote - > A relative of mine who is an independent contractors
Yes.> is in a position where a client would prefer to pay > him $N cash and equipment with an FMV of $M, instead > of just paying $N+$M in cash. > I realize that he'll have to include the $M value > of the equipment as gross business income. > My question is whether or not my relative can depreciate > the equipment acquired in lieu of (some) cash the same > way and amount as if he had bought the equipment himself? > Put another way, will the ultimate taxes come out the > same in the following scenarios: > * Get paid $N+$M cash, purchase $M of equipment himself. > * Get paid $N cash + equipment worth $M. Cheer$$$$, Harlan Lunsford, EA n LA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
04-15-2004, 06:36 AM
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| Re: Can you depreciate equipment accepted as compensation? - quote - > Put another way, will the ultimate taxes come out the
Yes, the tax result is the same either way.> same in the following scenarios: > * Get paid $N+$M cash, purchase $M of equipment himself. > * Get paid $N cash + equipment worth $M. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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04-15-2004, 06:17 AM
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| Re: Can you depreciate equipment accepted as compensation? Rich Carreiro <rlcarr[at]animato.arlington.ma.us> wrote: - quote - > My question is whether or not my relative can depreciate
I would have to look, but he might not be able to claim> the equipment acquired in lieu of (some) cash the same > way and amount as if he had bought the equipment himself? "bonus" or "179" depreciation with respect to these items, especially if they had been previously placed in service and used by the employer. Might be a more favorable result if the employer is a dealer/reseller of these items and they are coming out of inventory (unused by the employer). MTW << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
04-14-2004, 07:44 AM
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| Can you depreciate equipment accepted as compensation? A relative of mine who is an independent contractors is in a position where a client would prefer to pay him $N cash and equipment with an FMV of $M, instead of just paying $N+$M in cash. I realize that he'll have to include the $M value of the equipment as gross business income. My question is whether or not my relative can depreciate the equipment acquired in lieu of (some) cash the same way and amount as if he had bought the equipment himself? Put another way, will the ultimate taxes come out the same in the following scenarios: * Get paid $N+$M cash, purchase $M of equipment himself. * Get paid $N cash + equipment worth $M. Thanks! -- Rich Carreiro rlcarr[at]animato.arlington.ma.us << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| accepted, compensation, depreciate, equipment |
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