@TomD8: Okay here's an example:
House costs $100,000.....father pays $90,000 at closing son pays $10,000 at closing...father furnishes 90% of the cost....no gift and the house is in father's estate stepped up to fmv at death per the IRS.
***OR*** House costs $100,000....father gives son $40,000 in cash.....father then pays $50,000 at closing and son pays $50,000 at closing....gift tax return needs to be filed for the $40,000 in cash father gave son and there is no step up in basis for that $40,000 father first gave son to get the percentage of ownership down from 90% to 50%.
So when father pays the 90% at closing why isn't the difference between what the son paid and the father paid a gift? State law says father and son each own 50% as jtwros, not 90/10 if they went to court. ?????
