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<<<<Will there be a gift tax of some sort on the $50K?>>>>

"Not for your girlfriend - there are no tax consequences for the recipient of a gift like this. There will be consequences for her father. The annual limit on giving is $11K per person (father and mother combined could give her twice that, or $22K). Beyond those limits, father/parents need to file a gift tax return. Typically that doesn't actually generate an immediate tax liability, because the way it works is that each person has something called a unified gift/estate tax credit, which amounts to the tax on about a million dollars (the limits are changing yearly). Actual taxes don't get levied until you've exceeded that amount. Instead, the gift is set against that limit, and eventually (when father dies) it will work out that estate tax kicks in a bit earlier than otherwise because of this gift. Or maybe not - our friends on Capitol Hill keep changing the rules, and who knows what the law will be next year, never mind 20 years from now.

So - short answer, no problems for girl friend, gift tax return (but likely no tax liability) for father."

I agree with Lorenzo description of gift tax rules.

"Lorenzo, waiting for irasmilo to tell me this is all wrong"

I am not irasmilo nor a tax pro, but I tend to doubt the characterization as a gift.

OP wrote: he is going to be on the title and will expect to receive benefits such as appreciation at the time of sale. . . . , but after the close he will be put on the title, or at least that's the plan."

IMO, someone who expects to be on title and to receive benefits such as appreciation is not making a gift. I would guess that they are creating some kind of bass-ackwards, oral general partnership that is completely ill-defined and which will be a real mess, BWDIK?

Regards, JAFO
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