...the trust give me $60K taxfree After putting 60K into the house I went to get a mortgage and purchase the house from the trust-- the trust wants to get $240,000 out of the house. After my remodeling it is worth $330,000+. I was planning on using the the equity I created with my 60K and financing 80% and keeping some cash but no one will use the appraised value, they use the purchase price-- so in order to not 100% finance I have to get 60K in cash before closing. Can the trust give me 60K without incuring tax penalties. Can the trust gift me the equity at close? How else could I walk away with a from closing with 10-20 K in my pocket, 20% equity in the home and no major tax hits for me or the trust?