If your father loses title in any way....... it is deemed to be a sale to him at FMV. So the tax consequences could be sizeable...and remember all depr is recaptured in year of sale, regardless of when the cash for the sales price moves.

So.......the equipment is seldom "sold"...........the only winner is the IRS.

Typical method of transferring equip------- since the objective is the USE, and not transferring the equity--------- is leasing. Style the lease to fit the decline in value of the machine. Include as part of the lease arrangement that the lessee is responsible for all repairs and maintenance-------- lessee deducts the costs for such as rental payments, and lessor picks up income AND expense of same amount for the amounts of such costs.

If the repair amount becomes a capital expenditure under the new law.....then lessee would capitalize it as a leasehold improvement, and depr as such.

Get an option to purchase the equip.........so that in the event circumstances change (death, whatever), the lessee can be assured of acquiring the equip at a stipulated amount.

If you rent your father's land from him, and rent the equip, making it a package deal will allow your father to not have to pay self employment taxes on the equip rent.

There is some theory that in the event a lessor is not in the overall trade or business of leasing equip........that it can escape taxation as self employment income.......I think such are more hope than substance, but there are those who might recommend it.

Have a good CPA run numbers on the cost to put lease income in your Dad's lap, as compared to you buying it, and him paying immediate tax------ a lot depends on your current tax structure, etc etc.