Gifts Of Equity
I have a scenario for y'all, hopfully someone out there will have done this before. We are in the process of buying a home w/a gift of equity of about 102,000. The sales price will be at 250,000.000, (recent appraisal value), the appraisal the estate has upon inheritance to them was for approx. 100,000.00. We will be financing approx. 148,000 less closing costs. So at the closing the estate (seller) will then cut us a check in the apprx. amt. of 55,200.00 since we are actually financing more than we owe to do improvements on the property. My question is this: What are the tax implications to the estate (if any)? Are there capital gains, gift or any other tax consequences on this transaction. 
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