In 2018, José, a widower, sells land (fair market value of $100,000) to his daughter, Linda, for $50,000. José has not made a taxable gift.

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The sale of land for $50,000, when the fair market value is $100,000, could be considered a gift of $50,000 from José to Linda. The difference between the sale price and the fair market value of the property is considered a gift for tax purposes. Therefore, José may have made a taxable gift and would need to report it to the IRS.

In 2018, José, a Widower, Sells Land (Fair Market Value