Parents Gift to Purchase a SFR- Taxable Earned Income?

[George Post]

Good Day!

I have a client who is being gifted $170k to purchase an owner occ. SFR as a primary residence. The donor is her father who will also be living there as his primary residence, but will not be going on title. The funds could either be wired to closing attorney or to the daughter (ideally the daughter's account so we can document funds available to close easier). The gift funds are comprised of fathers Heloc Funds, savings account, and retirement account. Heloc is to be paid off once he sells his current primary and moves in with daughter.

*Will the $170k be considered earned income for the daughter who is the purchaser? Does it matter if the funds go to her account Vs. Title before closing?
*Can the gifted funds be tax exempt for the father in anyway? I assume he is of retirement age.

Thanks in advance!

George Post