@Anonymous_ wrote: "You own a house with a FMV of $200,000. You give someone $25,000 in cash, but only with the understanding that they will purchase your house for $200,000 instead of $175,000. The $25,000 you gave that person (buyer) is not a gift."
I agree. But why would a seller do that instead of just selling the house for $175K? What would be the purpose of "giving" the buyer $25K and then getting it right back in the form of a higher sale price?
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
