---
kind: "section"
citation: "32 C.F.R. § 37.540"
title: "32"
number: "37.540"
heading: "May I accept fully depreciated real property or equipment as cost sharing?"
url: "https://uscodex.org/cfr/32/37.540"
---

# §37.540. May I accept fully depreciated real property or equipment as cost sharing?


You should limit the value of any contribution of a fully depreciated asset to a reasonable use charge. In determining what is reasonable, you must consider:

- (a) The original cost of the asset;
- (b) Its estimated remaining useful life at the time of your negotiations;
- (c) The effect of any increased maintenance charges or decreased performance due to age; and
- (d) **The amount of depreciation that the participant previously charged to Federal awards.**

## Notes

### Authority

Authority: 5 U.S.C. 301 and 10 U.S.C. 113.

### Source

Source: 68 FR 47160, Aug. 7, 2003, unless otherwise noted.