§ 15551.1. Encumbrances and Liens.

Source: https://govt.westlaw.com/calregs/Document/IE9E15C134C8311EC89E5000D3A7C4BC3?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)

If any property is transferred subject to a bona fide encumbrance or lien, such as a trust deed, mortgage, or pledge, the market value of the property is its gross market value at the date of the gift, less the amount of the encumbrance or lien at that time.

Note: Reference: Section 15551, Revenue and Taxation Code.