What is the basis on a house deed transferred to children for a minimal amount when the children sell the property?

When a house is transferred to children for a minimal amount, it typically involves a gift or sale below market value. For tax purposes, the children may inherit the property's basis from the parents, which is usually the original purchase price plus any improvements made, rather than the minimal amount paid. When the children sell the property, their capital gains tax will be calculated based on the difference between the selling price and this inherited basis, potentially resulting in a lower tax liability. It's important to consult a tax professional for specific implications and strategies regarding such transactions.