The following is not meant to be legal advice.
A few years ago, according to SEC.-27.02, Imposition of Tax, of the Instructions for Real Property Transfer Tax, in Oakland, CA, transfer taxes were calculated as follows: 1.50% * value of consideration. Under the section, the gift was considered a grant. Transfer taxes were imposed on property even though the property was never sold to them, and no consideration was given for the property.
According to SEC.5-27.05, exceptions of the Instructions for Real Property Transfer Tax, gifts were not exceptions to the tax imposed by SEC.5-27.02.
According to SEC.5-27.03, definitions of the Instructions for Real Property Transfer Tax, if the value of consideration could not be definitely determined, the value of the consideration shall be deemed to mean the fair market value of the property at the time of the transfer, after deducting the amount of any lien or encumbrance. To calculate transfer taxes, take the example of property with a fair market value $412,000. To prove a fair market value, hire an appraiser. According to the formula: 1.50% * $412,000 = $6180 + $1517.19 (Interest at 1% per month until balance paid) + $1545 (Penalties at 25% of principal) = $9242.19.
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