@Epsic wrote:
Thank you for your reply. Here are the numbers: original purchase of $680k, we paid a down payment of 20% with our shared account (money of both of us), and applied for a loan for the difference.
Now one of us would give $200k to the other as buyout, in consideration of the current equity of $400k.
Can you please tell me what the basis would be for the new only owner of the house?
Assuming 50% ownership, Basis would be 1/2 of $680k, plus $200k, plus the amount of mortgage that you assumed from the other person (50% of the total mortgage at time of buyout). Plus 1/2 of cost of any improvements before the buyout, and full cost of improvements made after the buyout.
