Yes, it sounds like you gave your fiancé a gift of equity so you could sell him the house for less than it's fair market value. While this was noble on your part, you cannot claim the gift of equity on your own personal tax return. However though, the $280K sale is less than what the house could have been sold for thus there is less of a capital gain to pay than there would have been if the house was sold at its Fair Market Value.
In addition, you would need to file a 709 Gift Tax return for the amount of the gift over $18,000.
When your fiancé decides to sell the house, his basis is now $280,000. This is relevant because if the market value of the house increases, he may be required to pay additional capital gains because the gift of equity effectively lowered his basis in the house from what it would have originally been based off of its Fair Market Value.
[Edited 02/22/25|8:15 am PST]
@Jsherron85
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