dollar deed transfer tax implications

[Joe Boggin]

my father is to take ownership of a property for one dollar. he is 67 years old and collects social security. the property is going to be a hold for a couple years. might be a rental but the decision has not been made yet.

upon recording dollar deed, the city will levy a transfer tax of 4% of assessed value (54k)....roughly 2200 will be paid in transfer tax to the city. when it comes to personal tax return, how will this be handled if he does not generate income? its just a buy and hold for a year or two? the property may be gifted to my younger sister at some point down the road...