We thought a simple transfer of the down payment to me or the business would work but it appears it would incur a gift tax.

I was blessed to have money gifted to me from my parents from their LOC (line of credit).

The latest suggestion I heard was to-take the property as a gift-i dont plan to sell, so capital gains tax isn't an -do the minor upgrades (kitchen and bathroom)-have it reappraised, hopefully around 585,000-refinance and put 20% down to avoid PMI and pay off my parents.what are your thoughts?

(My agent sends housewarming gifts to all her clients and every year after that, Christmas cards. 

My question is: since we are both already on title, which of the following best describes our situation:  (Note: no money is being exchanged and he will not be living in the property) A gift among family members where no money is exchanged A transfer among family members where only nominal consideration is given 

Dad was more than happy to gift me the equity (thanks again, Dad!)

Scroll to bottom of page.Tax calculators to help determine the cost basis of a home sale, dividend, gift, and inheritance assetsAdvanced Schedule C guidance to maximize deductions for self-employment incomeconsidering you live in a state with no income tax - you won't benefit from the state program offered unless you invest out of state.I suppose you can try it once and if you don't like it you can go back to the basic version.

You’d have to have the money seasoned in you bank account (in there for more than 60 days), the loan would also effect your DTI, I agree with the poster above, gift of equity from family member is much easier.

You also might be able to get away with a once a year Christmas card that has a $25 (nominal amount) gift card to a decent restaurant to thank them for their business.

You need to be able to document the improvements with receipts.There could be a "gift" aspect to this, too.