New business, old assets: How to report

[AdamM1]

I've received conflicting information on how to report assets purchased in years past but never claimed.  I will give one example and hope someone can confidently steer me in the right direction:

I am a photographer, by hobby for years but officially as a business (LLC) as of Jan 10, 2021.

I purchased a brand new camera in Jan 2018 for $3000.  It has never been claimed in any regard for tax purposes.

Here are the two ways I have been told to enter it  but I don't know which is correct:
1. Enter it for the full $3000 as tick the box that I purchased it new.  Enter "Placed into Service Date" as 1/10/2021 as this is when I became a business.  

2. Enter the reasonable current value of the camera (based on Used Pricing at reputable websites) and do not click the box that this was purchased new.  Enter Placed into Service Date as 1/10/2021.

Also, does it change things that despite not being a business until 2021, I still use a ton of the old content I created with that camera prior to become a business?  For example, I might sell a print today (reported as 2022 business income) of a photo I took in 2018.  

Thank you for any clarification!

[tagteam]

Property changed from personal use.

If you held property for personal use and later use it in your business or income-producing activity, your depreciable basis is the lesser of the following.

1. The fair market value (FMV) of the property on the date of the change in use.

2. Your original cost or other basis adjusted as follows.

   1. Increased by the cost of any permanent improvements or additions and other costs that must be added to basis.

   2. Decreased by any deductions you claimed for casualty and theft losses and other items that reduced your basis.

See https://www.irs.gov/publications/p946#en_US_2020_publink1000107371

[AdamM1]

I think I understand.  So in this situation...
1. The FMV of the camera in Jan 2021 = $2500 based on used product pricing at Best Buy.

2a. $3000 was the original expense with no improvements made.

2b. No deductions claimed. 

So I would have to list the price at $2500 since that is the lesser of the two?

[AdamM1]

And I'm assuming the fact that I use the photos taken with that camera prior to becoming an LLC for my current business has no relevance to its value?

[tagteam]

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@AdamM1 wrote:

So I would have to list the price at $2500 since that is the lesser of the two?

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Correct; the lesser of the two.