I do I.T. and sometimes a client will want to upgrade or buy a new computer even when their old one is decent.
Suppose they give me a computer that they paid $1000 for, and the FMV is around $400 at the time. Then I turn around and sell that to another customer for the FMV, about $400.
Do I need to count the cost basis as $0, making it profit, or can I count the cost basis as $400 making it a wash? Thank you
