Vehicle transferred to corp.

[Gretel]

What is technically the tax basis of a vehicle transferred that was never subject to depreciation? I assume it is the price paid originally. FMV than is used to figure value of stock. Shouldn't the FMV than also be used as depreciation basis for Corp?

Seems like a very simple question but I still would like to get confirmation.

[ChEAr$]

basis

What is technically the tax basis of a vehicle transferred that was never subject to depreciation? I assume it is the price paid originally. FMV than is used to figure value of stock. Shouldn't the FMV than also be used as depreciation basis for Corp?

Seems like a very simple question but I still would like to get confirmation.

is cost or FMV, whichever is lower.

After all, if he paid 22,000 for the vehicle three years ago and just now starting to use
it for business, would that be a proper basis when the truck is only worth 10,000 trade in now?
(grin)

[Gretel]

Thanks, Harlan. I came to the same conclusion, but in my resources they have examples only for rich people who have $100,000 tax basis and FMV of $900,000, nothing for simple vehicles and the like transfers. I hate this.

The only reference I found was in the TTB tab for depreciation, personal asset transfer to biz, and I thought this covered all biz's.