Selling half a 2nd home without refinancing?

[Ted Graham]

We have shared a ski condo with some friends for 10 years. We have bought a new place, and our co-owner's sister wants to buy our half of the old place.

She is going to give us our equity in cash, so we would prefer not to refinance the current loan or do any title work. She will be putting down at least 30%, so we aren't too worried about keeping our names on the loan, but we'd like her to be able to deduct the mortgage interest and taxes.

How should we structure this?