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Deductions & credits
"Is it fair market value minus mortgage?"
Yes, for federal gift tax purposes (i.e., filing of a Form 709 by the donor) it is the fair market value on the date of the gift less any encumbrances that reduce that value (such as the balance on the mortgage).
[EDIT: Obviously, you can only gift your share of the property (less your share of the related mortgage) since you are a co-owner]
‎December 12, 2020
8:05 AM
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