I live in Washington state and my mother lives near my brother in California. I was considering purchasing a house with cash, for her to live in. The cost of the house would likely be around $600,000.
I understand if she lives there, without paying fair market rent, that’s considered a gift that I would have to report (assuming fair market rent exceeds 15,000/year).
I was wondering if that still applied if I gifted my mother a small percentage of the home ($15,000 or approximately 2.5% of the home) of the value; at the time it was purchased? Would that free her of responsibility of paying rent and free me of responsibility of reporting her rent-free living as a gift?