Loan vs co-investor......gift tax

[Erin Margaret]

Hello there BP land! I'm trying to work out some creative financing for a massive historical renovation that has gone a bit over budget. My father is willing to help out with the estimated 25k we are going to need to finish the job but is concerned about the 'gift tax'. My question is, if he uses his money out of his own account and pays invoices directly how would the gift tax apply? He so far has put some funds in to a joint account which I have taken out as cash to pay contractors. Does gift tax apply there? I agree there should be some piece of legal paperwork involved incase something happens but should it be written up as a loan or as he is a co-investor?