Joseph51
Level 1
12-07-2019
03:55 AM
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CLIENT BOUGHT OUT HIS 50% PARTNER IN RENTAL PROPERTY TO LIVE THERE. WHAT ARE THE TAX RAMIFICATION TO THE PARTNER THAT BOUGHT OUT THE OTHER PARTNER?
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abctax55
Level 15
12-07-2019
03:55 AM
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Eh? I can't quite hear you.
Consequences for you, or the individual who sold out?
"*******Tax software is no substitute for a professional tax preparer*******
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TaxMonkey
Level 8
12-07-2019
03:55 AM
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The same as if he bought the house from anyone else. He may be able to deduct qualified mortgage interest and property taxes. He will have to carefully determine his basis in the home, as 50% will have partnership carry over basis and 50% will have adjusted basis based on what he paid his partner.
Of course the partnership return will be final, and is late unless an extension was filed.
