Hi, I have got an interesting situation I have found me in -- and I just wanted to know what the possible tax implications may be, if any. I live in Boston, MA and I bought a 2-family property in 2015 with a joint owner. We have owned it together since, and have lived in it for that time. I will be living in it for the foreseeable future (the next 1 year). I am now closing tomorrow on buying out the joint owner. I wanted to know if I can write this amount off on my taxes next year?
To give some numbers: The property was purchased in 2015 for $567,500. Today the property is valued at over $900k, so I am paying the joint owner $178k for their share of the property. My new mortgage will be $730k. One unit us rented, the other is my primary residence. Will I be able to gain anything from taxes on the $178k buyout amount?
