My father owns a property (approx. value $175000) he owes $60000. He wants to gift the property to me. 1. Can I pay (or give him the money to pay) the remainder of the mortgage and have him gift the house in its entirety? What are potential Gift tax issues?
Why not just buy it from him for $60K? The discount you'll be getting from FMV should go on your fathers' gift tax return (the $115K), and your father won't be able to claim a loss (since its a related party transaction), but your $60K will not be considered a gift.