You either give as a gift, or you sell. One or the other. If you are receiving compensation of any type in any amount from the child, then you aren't giving anything. You're selling it. In your case, you "Might" be selling it for less than FMV. But what matters is if you're selling it for less than you paid for it. Do understand that when selling property to a family member at a loss, your loss is not deductible. There is also the possibility that with the sale, there could be a portion of value that you are "in fact" gifting to the child. That would be reported to the IRS separately outside of your taxes, and gift reporting is not supported by TurboTax. That's why you should seek the services of a real estate professional.
You really need to seek the services of a real estate professional to ensure all your bases are covered. This is really important if your state also taxes personal income.
