I gifted a car to my son in 2015. The car was a 2010 Toyota. At the time, the car was used by my grandson who was going to college. After the COVID outbreak, my son lost his job. About three months later he began a delivery service for groceries and food. When my grandson returned from college my son began to use the car for his delivery service. Since he never anticipated losing his job, he didnt determine the FMV at the time of the gift. He has since sold the car.
Questions:
Since the car was used in his business starting in 2021. Is his FMV based on the gift received in 2015 or the conversion to business use in 2021?
Since no FMV was determined either in 2015 or 2021, how can the correct FMV be determined now?
