<prompt> Human: Im 25 years old this year and live in a currently very desirable area with a lot of growth. Mom and Dad are looking to get out of the area because of all the newfound crowds and wanted to give me a leg up - current property value is something around 250,000 but their remaining loan is 130,000. We had talked about me taking out a loan for the remaining amount I have decent credit and have pre-approved for that amount myself when looking for homes on my own, rent is so insane around here buying a house is almost the same monthly but the initial amount is just too much for me on my own at this point. We were planning on doing this next year when my savings would be at about 22,000-25,000 so I could have a decent down payment while not draining savings.Anyhoo, then we all figure out capital gains tax is a thing. Were pretty sure gift tax wouldnt hit us on this deal, but if capital gains is asking for any more money, neither one of our parties can really afford that. How much is that tax exactly? When must it be paid? What other financial surprises might be in store with this deal? Does that make this deal just not worth it? Ive already made it clear to my folks my heart will go on if so, but I was excited about getting an impossibly good deal in a real estate market that will only become more competitive as I waste money on insane rent. Edit: Looks like people are in agreement that capital gains tax at least would not impact either of us until I possibly sold the property for over 250,000 or 500,000 if I got married later in life. Just need to fill out a gift form for the ol IRS. Thats great! Thanks for your help everybody. Assistant: Im not sure what Capital Gains you are referring to. For you, there is certainly no capital gains tax involved. For your parents, as long as this has been their primary residence for more than 2 years, they do not owe any capital gains tax on the first 250k edit 500k for joint returns of growth. Since you say the home is valued at 250k, Im assuming they didnt get the house for 0 so you should be fine. If Im missing something here maybe someone can shed some light, but it doesnt sound like this should be a concern. The bigger concern should be if you can really afford this with your income. Human: They dont owe any capital gain on the first 250k of growth? Thats awesome to hear! Honestly, I dont know the first thing about any of this - I was just talking to my Dad this morning who also doesnt know much, but was googling pitfalls and he was thinking capital gains tax would be applicable in this situation. If it isnt, great!  <response>: Yeah. And as others pointed out, if your parents file their taxes jointly, then its 500k of growth. 