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Hi,
currently have a condo which is my primary residence. I would like to gift/transfer the condo to a family member. what would be the best way? i will continue to assist with the mortgage payments but would like to transfer it out of my name so i can buy my own primary residence.
Thank you.
Prepare a gift letter and transfer title of the property for $0. A lawyer can assist with this. The deemed sales price for tax purposes is equal to the fair market value of the property on the date of the gift. A certified appraiser can determine the fair market value. Since the property is your primary residence, you will not pay capital gains tax on the gift / transfer. You must get your bank's approval first, before making the transfer.