tsisson

My father gave me a house back in October. The house needs extensive renovations and recently my wife and I decided to start the home loan process. We decided to use a large lender, ofr the security of it. The home loan will be in my wife's name since her credit is excellent. They want me to basically sell the preperty which is in my name to the both of us. Because the loan is significantly lower than the property value, I have to do a gift of equity from myself to myself and my wife.

With this situation I have two questions:
1. Will I get hit with a capital gains tax since technically I am selling the house? The house is appraised at $212,000. My father purchased the house for $15,000 in 1965.
2. Will the $92,000 gift of equity require me to pay taxes on a taxable gift?

It's an odd situation since I am purchasing a house from myself and giving myself a gift.

Any help would be greatly appreciated!