Best way to buy family members home and pay less tax

[Brian S.]

Hello,

I'm looking for some advice on the best way to buy a family members home, and both of us paying as little tax as possible. The property is in the Tampa Bay, Florida area. I originally thought I would refinance an investment property I currently own in another state, but I'm not sure that's the best way. I'm wondering if its possible to do a deed transfer? I would go with my family member to have my name added to the title. Then I would refinance under my name, and pay my family member the agreed upon price of the home from the refinance. Does this sound feasible? Any issues that might arise doing it this way?

My other question would be about the tax implications. How would my family member get hit with taxes as well as myself? Is it possible to "gift" money in a situation like this? They're giving me a great deal and I want to return the favor by giving them the smallest tax bill allowed by law. 

Thanks in advance!

Brian