Q: If I quitclaim an investment property (house) to a friend, do I avoid paying capital gains and recapture taxes on it?
Does the capital gain and recapture taxes transfer to the new owner?
A: No, you pay taxes on your capital gain when you dispose of it, even if you give it away. The new owner's basis would be zero, assuming that by "quitclaim … to a friend", you mean that the friend gets it for free.
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