Question about taxes and the Giver of Annual Exclusive Gifts?

Do not connect the two issues. You stated that the sale of property would be for property in your name. Therefore the sale of the property is totally separate from the gifts you give later. I think you may be confusing this with the situation where the property is deeded to second person and then the second person sells it.

As long as you now own it and will still own it when it is sold, you treat this like any sale of property. If you sales price is greater than your basis, you will owe capital gain tax. As far as your capital gains, it does not matter whether you give the money away or spend on a diamond ring for yourself.

Now if you gift property, then the recipient of the gift is the one who sells, then they may owe capital gains. And then you would get into a conversation about their basis. Usually their basis would actually be the same as your basis would be, though there are a few complexities with a gift basis that can change that.

So who are you selling the property to? You state that the property is being sold for LESS than it's fair market value, so that difference is ALSO A GIFT. While you don't report that portion as income and pay capital gains on it, if the difference is more than $13,000, you are required to put it on form 709.

Once you *have* paid the capital gains on the money you did get, then you are free to gift it as well. Any amounts over $13K to one person also go on the 709.

To determine the gains on the property, you subtract the basis from the sales price. If the basis is less than the sales price, you have gain.

The gifts come last.

If you have a realtor sell it..you will pay her/him commission.

When the property is sold for more than it was purchased, it creates capitol gains.

Taxes must be paid on capitol gains.

Next comes paying off any mortgage that is on it.

Before you receive any funds, the lawyer's fees and mortgage discharge costs must be paid.

Then, you can do whatever you wish with any remainder.

if you sell property at a loss, and don't think of the market value, think of what you paid for it and what you are selling it for

if you have a loss there will be no taxes on the loss, whatever proceeds you get you can do as you like with it, if you make money on the sale, yes you will be taxed on the gain

if you give to individuals, the amount you give each one, $13000, as many as you want, is still not taxable to your estate

Yes, it's two separate transactions, 1) the sale (where tax is paid the same no matter what you then do with the money), and 2) the gifts, and they are treated separately for tax purposes.