It is irrelevant since the IRS condition is that they intended to resell it, it is not a "no flipping" rule. He clearly was planning on reselling it (for $0 profit) from the beginning. As far as the definition goes, he his doing this a favor for his brother. He is profiting from any goodwill that creates. If he didn't profit from the experience in some way, he should be willing to do this for anyone.