Level 15

Let's see if I understand = "gives small carpentry business" and receives $2,000 per month in exchange for this gift, and "agreed to be paid for purchase would be their starting basis of new company."

I think you might start by clarifying some of the terms used in your question. https://www.thetaxadviser.com/issues/2014/apr/casestudy-apr2014-vm.html may help you to organize what you think might be the case and  present it back here.