Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
13y
Beyond random musings, first, please use a Special Warranty deed, not a quit claim. Better for title coverage in the future.
You make a contribution of the asset at it's cost or market value after one year to the business, less any liabilities such as a mortgage. That market value or cost within the first year is your cost basis in the company and you begin depreciation when the asset is placed in service.
To clarify, the rule is assets are booked at cost within one year of buying them, then after that, you use the market value and you should have proof or justification of the market value. :)
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
13y
Yes, his entity would have to sue him before it would kick in, some may go there being closely held, but his company should have the title brought current and insured in its name, I did. Good point Wayne!