50% was on multiple years taxes. Now some of the properties will disappear from my taxes without being sold. others will show 100% ownership. Is that an issue?
It sounds like you sold the 50% interest in one of the properties to your partner, and you bought a 100% interest in the other. So you can treat it as a sale and purchase.
it seeems you traded yor 50% interest in one property to obtain you other partner's 50% interest in another property. the IRS position is that you sold the first property and bought the second. Sales price would be 1/2 the total Fair Market Value of the property you relinquished.
That becomes your bais in 1/2 the property you acquired. the basis would need to be allocated between land and building. and sdate acquired is the date of the trade.
by the way have you been filing partnership returns?
thank you have your response. Here is a little more info so that I make sure I file it correctly.
no partnership returns filed.
I put up 100% of investment money, purchase & expenses on all properties.
Partner paid me 3% interest.
we would split the profit & rent, 50/50
Property A goes to partner
Property B & C goes to me
Quit claim of deed never was filed at initial purchase for Property A. I am not officially on title for property A
How do I account for the initial purchase/expenses cost basis when I apply the sales price from the relinquished property A?
Do I file as if I sold 50% of Property A? Would I have to be paying taxes on that property?
Then I purchased 50% of Property B & C with a different cost basis than the initial 50%?
If I treat it as a sale, I would have a capital gain. Even if that gain was used to trade for the other properties.
Do I have to pay taxes on that gain? or can I show it as a swap/trade?
The only way you can avoid paying tax on the gain from sale of the property would be to arrange the sale as a like kind exchange. In order to do that, however, you would have had to arrange the sale through an intermediary, as you would not be able to hold the money from the sale that you used to purchase the replacement property.