"The gift of equity is on the settlement statement as a cost to the seller in expenses."

It's listed for clarity, as a reveal.

It's a debit or credit to each party. It doesn't mean it is expense for tax purposes. It's just part of settlement.

I still like investopedia articles, they describe things very clearly:

https://www.investopedia.com/terms/g/gift_of_equity.asp

"A gift of equity is the sale of a residence to a family member or someone with whom the seller has a close relationship. The price is below market value, as determined by a professional appraisal. The difference between the actual sales price and the market value of the home is the gift of equity. Most lenders allow the equity to be used toward a down payment."