Real estate gifting

[atoned]

What is the name of your state (only U.S. law)? Florida

Hello,

Five years ago my father put a down payment on a property for me, and acquired a mortgage that I have been paying since day one.
My father's intention since day one has been to recoup only his initial investment after the sale of the house.

I am not named on the property, or the mortgage.

The house is worth 2.5 times what it was purchased for, and now is the ideal time to sell.. which leads to my question

What is my best option for the sale, with the goal to leave my father with his initial investment of $30,000 while I receive the rest of the funds?
As I understand it, since I am not named on the property, the sale would be taxed as capital gains for my father. If we put me on the deed, I would have to wait two years to avoid the capital gains tax.
I don't see a way around the capital gains tax, but is there a way to avoid a gift tax?

Thank you

 

[LdiJ]

What is the name of your state (only U.S. law)? Florida

Hello,

Five years ago my father put a down payment on a property for me, and acquired a mortgage that I have been paying since day one.
My father's intention since day one has been to recoup only his initial investment after the sale of the house.

I am not named on the property, or the mortgage.

The house is worth 2.5 times what it was purchased for, and now is the ideal time to sell.. which leads to my question

What is my best option for the sale, with the goal to leave my father with his initial investment of $30,000 while I receive the rest of the funds?
As I understand it, since I am not named on the property, the sale would be taxed as capital gains for my father. If we put me on the deed, I would have to wait two years to avoid the capital gains tax.
I don't see a way around the capital gains tax, but is there a way to avoid a gift tax?

Thank you

There is no gift tax unless the value of the gift exceeds your father's lifetime exclusion for gifting. He would have to file a gift tax return, but unless the house is worth millions, he would not have to pay any gift tax.

 

[tranquility]

There could be an argument in regards to beneficial ownership where you were the one who owned the property and your father only held it for you for some reason. Who has been deducting the mortgage interest?