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You parents will be making a gift to you in the amount of $178,000 and would have to file with the IRS a gift tax return. If a gift in excess of $12,000 is made by one spouse, the couple can use both annual exclusions by filing gift tax returns election to split gifts. If spouses give community or joint property, the gift is considered to be given half by each-it is not a split gift. Your parents have a lifetime $ 1 million gift tax exclusion. The only consequence of the gift your parents will give you will be the requirement that a gift tax return be filed. No taxes will be due on the $202,000 gift. Your parents will file Form 709 (www.irs.gov/pub/irs-pdf/f709.pdf www.irs.gov/pub/irs-pdf/i709.pdf) when the gift is complete.