I purchased a home which I live in as my primary residence. A family member is considering assuming the loan and residing there as their primary residence. There will be no money exchange... I'm moving out and they are moving in to assume the loan.
Do I have a tax liability when I move out?
What will the cost basis be when they sell and is this Subject to capital gain or anything special because it was an assumption? How would the sale of the house be handled in the future? Thanks!
