Taxes On Selling Rental Property
I sold a residential rental property to my son. I owned it for 14 months. In the sale I gifted a substantial amount to my son in the form of equity. Does the gifted amount still count as profit in the sale or does it come off of the selling price? 
The sales price for calculating gain would be whatever he paid you. Sales price - your purchase price - improvements you made + any depreciation taken = gain. If you realized a loss on the sale, you cannot deduct the loss until your son sells the property to an unrelated party.
There may be either gift tax issues and/or estate tax issues since you gifted him a large part of your equity.
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