from reg cited in the gift tax instructions
https://www.law.cornell.edu/cfr/text/26/301.6501(c)-1
look at paragraph (f)(3) for what a qualified appraisal and what it must contain.
donor's basis from instructions
Column D. Donor's Adjusted Basis of Gifts
Show the basis you would use for income tax purposes if the gift were sold or exchanged. Generally, this means cost plus improvements, less applicable depreciation, amortization, and depletion.
For more information on adjusted basis, see Pub. 551, Basis of Assets.
Morgage - good question since the mortgage company may not allow the property to be gifted without the mortgage being paid off.
Noncharitable donees. A gift of encumbered property is valued as the excess of the property's fair market value (FMV) at the time of the gift over any debt to which the property is subject. The liability encumbering the property is deemed consideration paid to the transferor; thus, the donor realizes income to the extent the liability exceeds his or her adjusted basis.
Charitable donees. When a donor transfers encumbered property to a charity and the property's FMV exceeds his or her basis, the donor will recognize income. The basis of the property transferred must be allocated between that portion considered a sale and that considered a gift, which may trigger income or capital gain to the donor.
