As in many situations like this, the answer to the question can be easily found if another, preliminary question is asked: why?
Assuming that, economically, the fair market value of the transferred asset (whatever it is) is $1,000 and it was transferred for only $1 - there must be some reason why this was done that way, as opposed to a sale for $1,000, which is what you would expect if the transaction was done at arm's length:
Maybe the transferree is a charity and the the transfer was done for charitable purposes: that's one possible tax treatment.
Maybe the the transferor received stock/equity in the transferre: that's another.
Maybe the transferee is owned by a relative of the transferor and it was done as a gift: yet another.
Or there may have been some other, unstated, reason (repayment of debt?).
So, find out the reason and the tax treatment will suggest itself.