Gift Tax Question

[Mars103]

What is the name of your state?What is the name of your state?What is the name of your state? California

Currently I co-own a house with my mother.
We are both on the deed and the mortgage loan.
My Mother lives out of state and I live in the house.
I have been living in the house for about 5 years and making the mortgage payments.
I am thinking of refinancing the house with a cash out option and using that money
to buyout my mother (which she agrees by the way).

My plan is to give her the money as a gift and I will file a gift tax so that neither my mother nor I have to pay taxes on the money.

1. Will such a plan be allowed under IRS tax laws?
2. Is there a better option to minimized the tax burden on such plan.

Any comments will be appreciated.

 

[anteater]

A gift is voluntarily transferring something of value to another without receiving any consideration from the person receiving the gift.

You are transferring money to your mother. Your mother is transferring her ownership interest in the house to you.

There is consideration being given in return for your money. It is not a gift.