The buyer is using some creative financing to purchase the house. Evidently they don't have enough money for a down payment and want me to raise the price of the house to cover their down payment and closing costs. Then, at closing, they want me to give them a "gift" of their down payment. By the time the I's are dotted and the T's are crossed, I will end up with my original purchase price at closing.Any time you have to put the word gift in quotes, you're probably not really giving a gift. If this amount is over $10,000 you could possibly be liable for a gift tax. This is payable by YOU, not the recipient of the gift.A better way to structure the deal might be to pay their closing costs and give them an allowance for repairs on the property. These won't affect your income taxes, as they are adjustments to your selling price.You might get more ideas at another board here at the Fool called buying and selling your home.--Peter
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