It depends on how you structure this. A house, in and of itself is not "income". I can pay cash for a house, after closing I can remove my name (Quit Claim) from the Title and Quit Claim my child on. Either for "love and Affection" (no money has been exchanged) or a dollar, or any mutually agreed upon amount. whatever. If there is a dollar amount, you're talking literally selling the house to the other party, and then there is excise taxon that amount . The only taxes my child would be responsible for would be the property taxes, up until the time the child decides to sell the property. Then there would be Capital Gains to pay if not reinvested.