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Old 03-07-2011, 09:07 AM
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Asset depreciation

I have started building a barn for my farm business. I had 1/2 of it completed in 2009 and started it as an asset in 2010. Now that I have material cost in 2010, do I add it to the original cost or start a new asset of the 2nd part of the barn or do I just expense the cost. 1500.00 is the amount.



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Old 03-08-2011, 12:34 AM
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“ do I add it to the original cost or start a new asset of the 2nd part of the barn or do I just expense the cost. 1500.00 is the amount.”----> In general. original basis in an asset is determined by the way it was acquired whether through purchase, in trade, or received as a gift or inheritance. The original basis of the property is adjusted by deductions, such as depreciation, or by additions, such as capital improvements. Adjusted basis is the new basis after additions or deductions to the original basis have been made.



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