Now instead of keeping the additional $800 at the end of the year, you give it right back to your tenants as a holiday gift.

Could she gift it to me?

The three main US tax issues that foreign investors need to be aware of are: (1) income tax; (2) estate tax; and (3) gift tax.

Are you borrowing or is she gifting the cash from your mother?

M pays J an agreed current value of his equity and then makes monthly mortgage payment to J (with assistance from others - M will contribute up to annual gift tax limitation). 

With an FHA loan, the down payment can be gifted by family or use retirement accounts to fund the deal. 

Further focusing on what is in writing, I'm going to guess your friend signed a letter saying that the down payment was a gift, with zero expectation of repayment, since that would have been something the mortgage underwriter required prior to closing.

I understand that you have to do a gift tax return when adding them to the deed if you already own the house, but there would be no tax due, as it just goes against the life time gift exemption.

Hi,My parents are looking to gift me and my sister some money this year.

But in my experience Paul I always make contact with neighbors, I come barring gifts (donunts) and I get the full scope of the whole neighborhood and alot of the time they will look out for your investment always exchange numbers you'll be suprise what happens when you involved the people.