"I am paying the joint owner $178k for their share of the property."
So add that to the $283,750 and your new cost basis on the property is $461,750.
" My new mortgage will be $730k."
So hows that? Where does the extra $268,250 come from on the mortgage? What did you leave out and not mention in your post?
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The poster isn't paying $178K for the other half of the property, he/she is also assuming the other half of the mortgage so the $178K is the out of pocket, cash portion of the settlement Assuming a 20% equity requirement that suggests the property is valued at something like $912,500 so the new basis would be along the lines of $283 ,750 + ($912,500/2) = $740,500.
