Peter R. wrote:
wrote:

Since you can only take depreication against the basis (or cost to put
into service), and since her basis would be $0 since she got the plane
for free, I can't see the point of this strategy.

What if the recipient's s-corp purchased the aircraft for the business?
Wouldn't that establish a basis?


Sure, for the s-corp. But the recipient will still have to pay taxes
on the FMV of the plane that she received for free and sold to the
s-corp. That FMV will be what the s-corp paid her for it, unless that's
obviously a sham price below book value in which case she would
probably have to pay taxes on book value.

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