Gift of Equity.......TAX????
My father wants to sell his home to me. The valaue is around 185. He owes about 145 on it. He wants to sell the house to me for 185 and then give me a gift of equity of around 40k so that the LTV will be less than 80% and i won't have to pay PMI.
My question is will either of us have to pay any kind of gift tax? Although this amount is more that the allowed 11k gift a person can receive in order to not pay tax, I figured that there might be a chance we could escape this since its not an actual cash gift.
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