Yes. Gifted funds qualify if the gift is genuine, the investor now owns the money outright, and the donor's lawful source can be documented. The gift shifts the tracing burden onto the parent's records rather than removing it.
A gift is lawful capital only when the donor's money was
The regulations define capital broadly and require the investor to show it was obtained through lawful means. Money received as a gift belongs to the investor once given, and the petition can be built on it. What the officer then wants is proof of where the donor obtained it, because a gift is one of the easiest ways to disguise funds of unknown origin.
For a retired Mount Pearl tradesman who sold a rental property, that means the original purchase agreement and the mortgage, records of the rental income and its tax reporting, the sale agreement and closing statement, and the bank statements from the proceeds to the gift transfer. The gift must also be unconditional: a document that calls it a gift but obliges the couple to repay it is a loan, and a loan not secured by the investor's own assets is treated differently. A properly documented gift is not a weakness in the petition.
An undocumented one is a request for evidence at best.