@Opus 17 stated:
The basis of depreciation for the asset when placed in service with the new business is either the fair market value at the time, or the adjusted cost basis, whichever is less.
This is not correct, as based on these facts, there was business use and prior depreciation taken.
The basis of contributed property, in this example, is the same as it is in the hands of the contributor; adjusted basis.
There will be absolutely no change in the basis of property contributed to a single-member LLC, if the single member LLC is disregarded. As a result of being disregarded, it is as if the contributor contributed property to themself; there is no entity for federal income tax.
Based on your facts, as noted by @Mike9241 , since it is already fully depreciated, you will have zero adjusted tax basis.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
