We were 50% owners on a duplex that we bought for $249,000 eight years ago. Our daughter was the other 50% owner. She lived in one unit for 3 years then converted her side to a rental as well. In 2013 she financed the duplex in her name and we gave up our 50% ownership to her. The duplex at that time was valued at $231,000.

How do we report this on our taxes and how does she report it on her taxes? She was 50% owner for part of the year and is now 100% owner. Does she show that as a sale and a purchase?

Do we file a gift return to report our gift?

What else do we need to do for our taxes?