@Debbie CostIf you gift the house to your son, even a partial interest, you may need to file a gift tax return.

If you bought a multi at the right price or if she rented it to you for fair market (even if she gifted the rent back to you. 

He's told me that he'd be willing to get creative and try to help me figure out how to come up with a down payment by possibly writing up a contract to gift me the money at closing.So after I found this site I started thinking.....He's owned the building for 14 years , so I know he has equity, just don't know how much.

Owner is about to go into bankruptcy and it was gifted to him by his mother.Can he owner finance it to us to keep it out of his bankruptcy so we can get it locked in until we are ready to pay in full next year?

Or find a friend that will loan you the down payment - and work the the seller - or if you have a job and credit and no job - use a loan program that allows gifted funds to close (owner occupy loan).

If that's what's going on, then I feel bad if I'm "looking a gift horse in the mouth". 

I’m doing an open house at a 1% rule duplex in Saint Paul tomorrow and giving away a $20 gift card to Roosters BBQ.

What's the best method of doing this to keep from capital gains from a gifted house and such?  

For you it's an adult gift.

If there’s something that affects how much money you have on hand that isn’t shown by simply looking at your salary, be prepared to document it.Explanation of any credit inquiriesSubstantiation of any large deposits or cash gifts that aren’t regular income.