50% of Home gifted to Kid

[Gretel]

If parents gift 50% of their home to their kid, kid gets 50% of his parents basis. If there is a mortgage that only the parents pay, it doesn't make any difference, correct? I feel this is such a stupid question of someone doing taxes since over 20 years and I cannot put my finger on it why this is confusing me now. Thanks!

[Uncle Sam]

The mortgage company has a lien on the property - it should be notified of ownership change. What happens if parents default? Does the mortgage agreement permit such a transfer?
A (joint) gift tax return needs to be filed to report the gift.

[New York Enrolled Agent]

A (joint) gift tax return needs to be filed to report the gift.

A gift tax return is an individual tax return. There is no joint tax return.

There can be gift splitting between spouses but each individual must still file his or her own return.