@Anonymous wrote:
were you a co-signor on the mortgage? if so, since we don't give legal advice see a lawyer to find out if you are still liable on the mortgage
That is good advice, in general, but for the purposes of calculating the value of the gift, it is irrelevant whether or not the donor is a co-signer on the mortgage (or otherwise personally liable for repayment); the value of the gift is reduced by the amount of the co-owner's share of the encumbrance, regardless.
EX: A and B are co-owners of a house with a FMV of $100,000. There amount of the mortgage is $80,000, but only A signed the mortgage (i.e., is personally liable for repaying the mortgage balance). B quitclaims her share of the property to C as a gift. The value of the gift from B to C is $10,000 (one-half of the equity in the property).
