They write it off, Jerry.

You don't even know what a write-off is! Do you?

Probably as a business expense it can be deducted from income for the business + no increase in personal income for him. It's not free but is something like a 50% savings vs. paying himself and buying it personally.

You really can’t hand down your business expensed iPhone to a family member.

That’s liable to land you in hot water in an audit.

Unless it's over $2500 it's probably a business expense and not an asset, so the IRS wouldn't care what you did with it later.

Wow! You're right, since 2010 cell phones (and computers under $2500) haven't been listed property.

I stand corrected.

source for this?

my accountant.

I guess he buys it from his business at a (heavily) depreciated price?

Yeah, electronic devices has crazy high depreciation rates.

Gotta write off the wife, too.