Gift tax on a home addition?

[Glen Maynard]

I also posted this in the Property Law area:

My mother is an Alzheimer's sufferer and my father can no longer care for her himself. He wants to move to Texas to live with me and my wife for help and support caring for her.

I own 5.5 acres outside of city limits and the county I live in does not have deed restrictions as to what I do on my property, building-wise. My dad is financing a $140,000 addition to my home for he and my mother to live in.

My daughter-in-law works for a title company and she says that she believes that besides the increase in property value creating a hike in property and school tax, there will be an additional GIFT tax liability.

I need to know if I will incur any additional tax liability besides an increase in property tax, which we have already factored in and my father will be paying the increase.

Any advice or information anyone might have would be most appreciated.

Thanks.

see your other post