Carl
Level 15

Get your taxes done using TurboTax

Since the computer was given to you, and was not compensation for products or services you provided, the cost basis is zero. Now if you had dome something like "I'll knock $50 off your invoice if you let me take the old computer", then that would allow you to claim the $50 you knocked off as part of your "cost of goods sold" in the Inventory/COGS section, in the tax year you sold that computer.