Gift Of Equity To Son Who Has Been Tenent
I purchased a condo a little over two years ago and my son has been renting it from me. Now he wants to buy it. The property has increased in value significantly. He wants to write a contract for $180,000 with a gift of equity in the amount of $80,000. This will allow him to purchase the condo and to refinance in the near future pulling out equity to pay off several small debts he has and buy some furniture. His mortgage company is fine with this. I paid 96,000 for the condo If I write a contract for $180,000 gifting him $80,000 will I be responsible for capital gains? The truth is I won't be making any money on the sale. I realize I will have to file a gift tax return but this is the first gift I have given him so I certainly won't reach the maximum gift amount. I'm confused here. Any advice would be appreciated. Thanks
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