"Alexzendor" wrote:

- quote -

Sure.

- quote -

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.

- quote -

Correct.

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

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

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.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >