I know this has been discussed but all the situations I read are all a little different, so U just wanted to ask. We are purchasing my parents second home. Payoff is around 155 to them, its valued in the mid 200's. We wanted to use the gift of equity and purchase it for 185 from them to cover down payment without going over the 30k gift limit. My parents purchased it for 165. Will they need to pay Capital Gains on the 20k difference? Or does it just count as the gift because they're not actually making that money? Any feedback would be appreciated.
