Business Tools Downloadable checklists, model business plans, forms and other documents. Our small business online advice columnist. CCH Online Store Books on small business topics. Free E-mail Newsletter Monthly updates on developments affecting small businesses. Usually, the tax basis is equal to the asset's purchase price, minus any discounts and plus any sales taxes, delivery charges, and installation fees.
Some special rules apply to trade-ins of business equipment.
If you acquire property by gift, the tax basis for depreciation will be the same as the donor's basis at the time of the gift. Things aren't always so simple. Adjustments over time - during the period you use the asset, you may have to adjust for depreciation claimed, additions or improvements, or losses to the asset. All Rights Reserved.