I am not clear. You answered about the impacts to the receiver of the property but did not answer about the mother (the giver of the property). Does the giver/gifter have any tax liability? I know she has to fill out the form 709 but how does she show the gift of the rental property and on what form on this year's taxes? If it were a sale she would recoup the depreciation as "income" but how does she handle the depreciation when the house is a gift? Is it a "sale" at $0? Is the depreciation she already took considered taxable?
