If you gift a business asset, the person you make the gift to is responsible for any depreciation recapture due on the asset.
So if a dad is gifted a car from his son, and the son took depreciation on this car when he used it for business use, when the dad sell the car, he might need to recapture depreciation that the son took on the car.
The son could have sold that car to his dad, then the son would have claimed the depreciation recapture at that time, (and the son could then have gifted the dad the amount the dad paid for the car).
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