Or she could look into getting a FHA loan and you could “gift” her the down payment. 

That way the deal performs from the first payment, not from hoping the market gives me a gift later.Most investors never look at it that way, but when you structure the exit correctly, the returns look very different from the typical 7 percent world you are talking about.

Otherwise, it's a gift and you give the gift freely with no expectation of getting it back. 

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A thanksgiving/christmas/holiday gift card couldn't hurt either.

This can meaningfully reduce taxable gain.Time the sale with income: If you can close in a lower-income year (retirement, gap year, lower earnings), you may qualify for a lower capital gains rate.Leverage charitable giving: Gifting highly appreciated securities (if you also hold investments) can offset taxable gains from the home sale.Marital planning: If one spouse passes before the sale, the surviving spouse often receives a step-up in basis to fair market value, potentially wiping out much of the gain.Beyond the $500K exclusion, the main levers are maximizing your cost basis and carefully timing the sale.

For real estate, a simple gift or loan is usually best.If her estate will not exceed $15M or $30M, the lump sum gift with a gift tax return is simplest.

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It is either a gift or a sale.

There are several tax and planning considerations to think through.From a tax standpoint, a few things stand out:Capital gains exposure: When your fiancée’s mom gifts the property, it’s considered a gift at her cost basis.