Which house is your primary house? You can deduct Mortgage Interest and Property Tax if you it itemize deductions. You do not report gifts received on your tax return. The giver sometimes needs to file a separate Gift Tax return but no taxes are due. But I don't know about gifting equity.
What are you doing with this home? Are you going to rent out one of the homes? Plus it's hard to understand what all is happening. Who is doing what? Why are they paying you back for a loan on your house? Wouldn't you owe on the loan?
