Home sale between joint owners

Apr 19, 2009 1 Replies

I have a joint property on which both of us have a gain in access of $250K. Is it possible by one of the joint owner to sell the house to the other partner at a fair market price?



What will be its tax implication. Can the new owner claim $250K gain and adjust the basis to new value.



I assume the other owner who is selling his interest to the other partner will have no issue and will handle his portions of gain as if a property is normally sold.


Sure.

I assume by "new owner" you mean the one buying the other out. No, he's not selling anything, so he has no recognized gain. His basis becomes his original basis plus what he paid to buy out the other owner.

Correct.

-------------- Phil Marti, VITA Volunteer Clarksburg, MD

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required