I've read through all of these threads but I am still confused. I purchased a house in March to redo for my daughter and son-in-law. I purchased the house for $230 and put $90 into it so my overall investment into this home is $320. I want to sell it to my daughter and son-in-law for $320. I know that I can gift them $14,000 each ($28,000) without having to do any forms for the IRS but if I gift them the equity in the house (the houses FMV is around $380 but I am only gifting them $28,000) when I receive my 1099 for taxes I know it will show the selling price as $348,000. Will I have to pay capital gains on the $28,000? Also, do these types of things flag the IRS? I don't want to get involved in all this if it is not worth it.
Thank you in advance!!
