If I make a gift of real estate to my child, who assumes the outstanding mortgage, which values do I use on form 709? Also, the value has increased since I purchased; will I need a Schedule D for capital gains, and which values do I use there?
More details: the title transfers to my child; I remain as a guarantor on the mortgage where my child is the primary mortgage holder.
E.g.:
My cost basis = 1,000,000
Outstanding mortgage = 700,000
FMV = 1,200,000
Thanks you.
