I live in MA, and I am considering selling a real estate (condo) as a gift to family member ( my brother) for less than fair market value now. Is there a tax penalty ?

[zdeno]

I live in Massachusetts, and I am considering selling a real estate (condo) as a gift to family member ( my brother) for less than fair market value now. Current market value is about $250,000 and I would sell it to him as gift for $ 150,000. Is there going to be a tax implication or penalty for me as person who is selling this to him  on either state or federal taxes? This property was rental, I collected and reported rental income over the last 4 years

[TomD8]

What you're describing is called a "gift of equity."  This web reference gives a good summary of the tax implications:  https://www.investopedia.com/terms/g/gift_of_equity.asp