Would This Be Considered A Gift Of Equity?
This is our situation. My 81 year old father inlaw has moved from San Diego to Georgia to live with my husband (his son) and I. The home we currently own is a 2 story my father inlaw wants us to buy another home so that he does not have to climb stairs. We will keep our home as a rental. He is selling his home in California for $400,000. The home we are wanting to purchase is $400,000 and he wants to give us $200,000 to use as a down payment in return we will provide him a home and care for the rest of his life.
Since he will be living in the home is this truly considered a gift? We will have a mortgage on the remaining balance on the home that we are purchasing. Will he need to pay capital gains on the money that he gets on the sale of his home in California? Thank you for your assistance.
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