Gift of Equity Tax Ramifications

[Joe Chesak]

I am curious about the potential tax ramifications regarding a gift of equity from both a sellers and buyers perspective.  This would be for both Illinois State Tax and US government filings.  I am having a hard time getting accurate information.  To be specific, if a seller (non relative, but, friend) were to give me a gift of equity (ex. $20K) within the sale of the property to apply towards the down payment which I am purchasing from him (because the property needs quite a bit of rehab), what would be the tax implications to each of us?  The property will appraise out above the additional $ 20K included in the sale.  Can anyone point me in the right direction, or, a CPA to whom I can contact?  The few I have spoken to already are not certain on this topic.  Thanks!