We are in this now too. Appraised 170K. Sale price 150K (30K of the equity was used as our down payment so our loan was only 120K). She orig bought home for 137K. So 1) is the gift of equity $20k (diff between appraisal and sale price) or the 30K we used as the down payment and 2) she would pay capital gains on the 13K or not at all since she did not make anything as she gifted us the diff as equity - she got no cash?
