US gift of equity= ask an international income tax

QUESTION:
Hi, My husband to be and I are considering buying a home together (before we
marry) that has been in his family for many years, currently his brother and
wife own it and it is there primary home for over 10 years. My question is
this if the house value is 240,000.00 and we get a mortgage for 200,000.00
with no closing cost for us, our gift is the 40,000.00 on paper
does the brother and wife have to pay tax on the gift? And how does this
effect us for taxes as well?
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david ingram replies:
US citizens or residents incur a gift tax liability when they give away more
than $11,000 in one year.
You are buying it for $240,000.  You will have a $200,000 first mortgage and
your brother in law will give you a gift of $10,000 each and your sister in
law will also give you $10,000 each.
No gift tax because no single gift was over $11,000.
Gifts are not taxable to the recipient and will not have to be put on your
1040 as income.
Your ACB of the house will be $240,000.
Your brother and sister in law will not have any tax to pay on any increase
in value of the house over the last ten years because they are allowed to
make up to $250,000 each.
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