Real Estate Gift or Taxable?
Good Evening. I have a client who turned over a rental property to a relative. The relative took over the mortgage. There was no exchange of money other than him being relieved of the mortgage owed. How is this reported? Does the mortgage count as sale price? Is it a gift even though there is a mortgage involved? Do we file a 4797 and a form 709? Please advise. Thanks and have a great day.