Tax implications for gift?

[Jackson Tate]

I had a closing today that was supposed to be funded by another closing; however, the folks purchasing my home delayed things too late and so I had to find another option to finance my purchase. My dad offered to "gift" (as the bank labeled it) me the 42k needed, knowing that I will reimburse him once I obtain my proceeds from the sale of my home. Is either of us going to have any tax implications as a result of this even though in the end the net result is I funded the purchase?

[Andrew B.]

the bank may call it a loan for their purposes, but if you pay it back it was a loan and that's how the irs will classify it. I would keep proof that you paid it back in case you get audited. maybe consider writing up a basic contract as extra support.