In 2017 my father and I bought my primary residence. The purchase price was $430,000. He put in $200,000 and I put in the remaining $230,000 and I also paid all the costs incurred with owning the house. We are listed as joint tenants on title. The home is my primary residence. It is not, and never has been, my father's primary residence. We are planning to sell the home in 2022 and we anticipate approximately $250,000 in gain. He is willing to gift me all equity in the home, but we're not sure the best way to go about this and any help will be appreciated. Our plan is for him to quit-claim the deed to me, then file a 709 reporting that he gave me a gift of half the value of the sale of the property. Is this okay? Will it cause any trouble with the IRS? We are willing to pay capital gains taxes on his portion of the gain if necessary, but we'd rather not if we don't have to. Are there any other tax implications that we should be aware of? Thank you.
