Buying & Selling Real Estate
Market News & Data
General Info
Real Estate Strategies
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hospitable-deef083b895516ce26951b0ca48cf8f170861d742d4a4cb6cf5d19396b5eaac6.png)
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_trust-2bcce80d03411a9e99a3cbcf4201c034562e18a3fc6eecd3fd22ecd5350c3aa5.avif)
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_1031_exchange-96bbcda3f8ad2d724c0ac759709c7e295979badd52e428240d6eaad5c8eff385.avif)
Real Estate Classifieds
Reviews & Feedback
Updated over 3 years ago on . Most recent reply
![James Campbell's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/742951/1621496518-avatar-campbellequity.jpg?twic=v1/output=image/crop=483x483@55x0/cover=128x128&v=2)
Gift of Equity Purchase Question
Hello all, I'm buying a rental property that I'm going to move into from my grandfather at a discount. When I told my lender he suggested I use a "gift of equity" as the down payment and that way I wouldn't have to come up with anything down (if the property appraised). For example: if my grandfather wants $200k for the property and it appraises at $250k then the gift of equity = $50k which would act as my 20% down payment. This is how he explained it to me. However, now with $50k gift of equity + $200k to my grandfather, he noticed that the purchase price increased from the agreed upon $200k to $250k and my grandfather is afraid he will have to pay more taxes due to a higher purchase price. Does anyone know if he is correct? I asked my lender and he said nobody has ever asked that question. Thank you.