I am seeking advice on what to do with the empty lot I was gifted when investing in my first house hack duplex.

How does IRS tell the difference between a loan and gift money?

In our case, our mom in law gifted her half to us, as part of her estate planning, and our attorney had to handle the gifting paperwork.

Bank notified me days before closing gift money wont do for an investment property. 

Although you had clearly held the property for investment, the recipient of a gift who immediately sells their portion has not held it for investment.

I've heard of Quit Claim Deeds , I don't know if that involves a Gift Tax, which I was told there isnt anything in South Carolina.     

Additionally, though I know from a previous post that you think the kids of faith investors will just sell it off and enjoy their parents' sacrifice, I do like the idea of having a local condo that I can gift my kids when I'm gone. 

Can you expand on your statement that the father can give a gift of equity to the son?

My suggestion to draw up the note was just to help his parents out for tax purposes, as I believe "gifting" the cash would be capped at $10,000 per parent.

Or better yet, what is the book you've given most as a gift or what is your favorite book?