Equipment invested to another corporation in foreign country

[jmc]

A U.S. Corp. paid for equipment and has the title. Then it was invested and delivered to another corporation in foreign country which that U.S. Corp. has 100% ownership. Per depreciation rules, it says it should be used in the taxpayer's business or income-producing activity. Then, is there any way the U.S. Corp. can take depreciation of those invested equipment? What would be the best tax treatment for the U.S. Corp?

[Lion]

Contributed for Stock?

Was the equipment contributed by US Corp in exchange for the stock in Foreign Corp? Or was it just given away? Sold?

[jmc]

in exchange for the stock in Foreign Corp. for 100% ownership.

[Lion]

Doesn't own it anymore

Then, the US Corp doesn't own the equipment any longer; it owns stock in the Foreign Corp instead. The equipment is now on the books of the Foreign Corp.