I’m selling a foreclosure property to my son. I paid 120,000 for it. I’m selling it to him for 240,000 and gifting him $85,000 In equity. What’s the tax consequences?

[AmeliesUncle]

It sounds like you are actually selling it to him for $155,000.  That  means you have a capital gain of $35,000 (minus the cost of any improvements that you have made).

If you owed the property for one year or less, your gain is taxed at your regular tax rate.

If you owned the property for more than one year, it is taxed at a lower rate.  For most people, it is 15%.

However, that 'extra' income could affect other things on your tax return.  So the only way to know is to enter all of your information into the tax program.

[NCperson]

how long have you owned it? is you son really giving you $35,000 in cash.  did you put any capital improvements into it before "selling it" to him? how did you come up with the market value? 

if you paid $120,000 for it that is its market value; if shortly thereafter you sold it to your son and didn't put any capital improvements into it, isn't it still worth $120,000?