It depends. It may have tax consequences or it may not. It will depend on the amount of debt you owe, and the market value of the property and your cost basis in the property.
If your cost basis in the property is greater than the market value or the amount you owe, then you would not have any tax liability on this transaction.
However, if your cost basis is less than the amount you owe or the FMV, then you would have a gain and a tax liability.
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