RobertB4444 is correct in that you "sold" your half of the property to the other owner, for less than $100. To accurately report this transfer without claiming an inappropriate loss, you should report on your tax return that you "sold" your half for same amount as your basis on that date. In other words, you are reporting zero gain or loss, which is correct.
You can report this as a gift for the same amount, again resulting in zero gain or loss. Remember that you are limited to $16,000 per year per recipient for gifts, otherwise, you may need to file a Gift Tax Return.
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