Closing documents record the sale of house at $150,000-with a $25,000 marked as a gift from the seller to the buyer. This was a rental house. The purchaser is a nephew who at the last minute could not quailify for as high of mortgage as expected. Is the sales price for the rental the $150,000. The gift tax return is no problem... The $25,000 is a gift seller does not want it-is glad to see the nephew in the house. Did we ever decide on the income tax consequences to the seller. Thanks.