Gift of Rental Property???

[Colfax Mingo]

Taxpayer wants to gift rental property to son to use as his personal residence. Son would assume mortgage.

Fair Market Value: 100,000

Basis: 90,000

Depreciation; 30,000

Loan Balance: 45,000

How to report on taxpayers Individual 1040 and Gift tax return 709?

[DANRVAN]

It would be a partial gift / partial sale. The amount of consideration is the loan balance assumed of $45,000. 

The amount of the gift is $55, 000, (FMV less consideration).

There is no recognized loss since the amount realized is less than the adjusted basis.

Son would determine basis under reg 1.1015-4(a)

[Colfax Mingo]

Thanks