Tax benefit on mortgage buyout of a rental property from partner

[GJSRana]

I bought house as a rental property on a shared(50-50) basis in 2014. In 2019 i bought share of my partner through refinancing and paid him whatever his share was . My question is how do i incorporate the money i spent  to buy his share in taxes and  what deductions and benefits i can get in 2019 tax return.

[Critter]

Easy ... hopefully  you were already depreciating 1/2 the property you owned ... now  you will add the other 1/2 you just bought as a new asset for depreciation using the buyout amount plue any closing costs  as your basis. 

If you have NOT been depreciating the property correctly then RUN to a local tax pro to get this ERROR fixed asap.