under the law the vehicle is supposed to be acquired for use by the taxpayer and not for resale. the IRS could
view the gift as a deemed sale. Since you don't own it, if you use it in a business, the only deductions you could take are your out-of-pocket costs. You would not be entitled to depreciation. if it were gifted then your basis for depreciation at that time would be the lower of his tax basis or Fair Market Value. There is also the question of insuring the vehicle which needs to be discussed with your son's insurance agent.
