My wife and I recently refinanced our second home and added our daughter to the mortgage and deed. She will now be living in the house full time as a co-owner.
On investigating I discovered an example which stated that this could be handled as a gift and sell transaction. This is how it was explained. My daughter would not only receive half ownership in the house, but also assume half the mortgage. Is this allowable and if so once the calculations are done, if the gift value is less than $15,000 do I need to submit a 709 since she is now a co-owner and co-mortgagee. Here is a numerical example.
House value is $200,000 so we gift her $100,000
Mortgage is $180,000 so she assumes $90,000
Therefore we have gifted her $10,000 which is less than the $15000 allowable amount.
Since the gift is less than $15,000 do we still need to submit a 709.
