Colfax Mingo Posted February 14, 2016 Report Share Posted February 14, 2016 Taxpayer wants to gift rental property to son to use as his personal residence. Son would assume mortgage. Fair Market Value: 100,000 Basis: 90,000 Depreciation; 30,000 Loan Balance: 45,000 How to report on taxpayers Individual 1040 and Gift tax return 709? Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted February 15, 2016 Report Share Posted February 15, 2016 It would be a partial gift / partial sale. The amount of consideration is the loan balance assumed of $45,000. The amount of the gift is $55, 000, (FMV less consideration). There is no recognized loss since the amount realized is less than the adjusted basis. Son would determine basis under reg 1.1015-4(a) 1 Quote Link to comment Share on other sites More sharing options...
Colfax Mingo Posted February 15, 2016 Author Report Share Posted February 15, 2016 Thanks Quote Link to comment Share on other sites More sharing options...
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