the question is:
were are buying my grandmother home for $145,000 (the house has an appraised value of $187,000) so there are alot of things we can do right now.
if we inflate the selling price to $174,000 and she gives us a "gift of equity" for $29,000 I avoid having to put any money down and only have closing costs to worry about.
Now here's the problem I know that you are allowed to gift to anyone $11,000 a yr and the IRS doesn't bat an eye.
so my grandmother would then be infact giving me us $29,000 ($11,000 and my wife $11,000) there is $7,000 that the IRS is gonna wanna know about.
So is there an actually gift tax due on the $7,000 or is it covered under the lifetime maximum "unified credit"
also would I be considered a direct skip as I am a grandchild even tho I am purchasing the property vs her actually giving me the property, she's only giving me a part of it.