My retired parents are going to put the down payment on a lot that I am purchasing. I am building a home and plan to move them in with me. Is this a legal / property ownership issue? Or should they gift me the money and I make the down payment?

Believe they should gift you the money to keep Property issues clean and in your name or whoever may it be, but possibly run it by them first. Do you think they would want to be on the title?

If they gift you fhe money, on the other hand, it may create tax issues for both parties.

This is actually what everyone is comfortable with.

This is a good arrangement, that is making a place for fhem in your new home, for the security and well being of your elder parents.

How much is the downpayment? Your parents can gift you $26K ($13K each) without tax consequence.

On the other hand, there may be advantages for you to buy the property as joint tenants with right of survivorship.

I would discuss this with a local real estate attorney.