<p>The gift limit is $13,000 per giver, so two parents could give their child $26,000 per year with no gift taxes. Gifts above the $13,000/$26,000 annual limit are called “taxable gifts.” That doesn’t mean there’s a tax due if that amount is exceeded. There’s a $1,000,000 lifetime gift limit, so if the gift falls within that limit, even if all given at once, then no federal gift tax is due.</p>
<p>The giver must file IRS Form 709 for these taxable gifts, even when no tax is due. </p>
<p>To answer the poster’s original question, if the house is in the parents’ name then it’s an investment property and is reportable on the FAFSA form. If it’s in the child’s name then it’s probably not reportable. The net equity is reportable on Profile, so shifting from one asset class (cash) to another (real estate) might make no difference to Profile schools that use home equity in their formulas.</p>
<p>Edited to add: UCs only look at FAFSA, they don’t require the Profile.</p>