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The property may be simply gifted - that is not an issue.We just need to determine WHO is gifting what is the gifted value.
Correspondingly we need to determine the value owned by the remainder-man and the value of the life estate holder.
The sale below the market value would be treated as a combination of the sale and gifting.
For instance - your the property with FMV $100k is selling for $40k - that means
40% of the property is sold and 60% of the property is gifted.
Let me know if you need any help with reporting.