QUESTION
Tax consequences of buying out a minority real estate investor
Asked on May 24th, 2016 on Real Estate - California
More details to this question:
I purchased a property in 2011 for $410k with my sister where I own 70% and she owns 30%. The property is now worth $520k and I would like to buy her interest out to simplify my life. What are the tax consequences for me to buy her out?
1 ANSWER
Estate Litigation Attorney serving Redlands, CA
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Your sister would have a capital gain on the sale of the property and you would have a basis in the property equal to the purchase price of your 70% and the other 30% that you will be purchasing. The 30% is subject to reassessment for property tax purposes.
Answered on May 24th, 2016 at 10:33 PM