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I am currently in a joint ownership of my first mortgage. I own the 30 % of a 30/70 venture. My partner has asked me to leave and has offered to pay me 33000 of the 110000 principal. Are there any tax implications to this? Should the house be sold and then the equity transferred at that time? What course of action is best to insure value? Thanks in advance- Ed
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I am currently in a joint ownership of my first mortgage. I own the 30 % of a 30/70 venture. My partner has asked me to leave and has offered to pay me 33000 of the 110000 principal. Are there any tax implications to this? Should the house be sold and then the equity transferred at that time? What course of action is best to insure value?

I'm confused. If you invested in a mortgage and are now selling your interest you have a capital gain or loss just like any other investment. Your basis is what you invested minus the principal portion of the repayments.

If this isn't what's going on, please clarify.

Phil
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I am being bought out of the morgage befor the sale of the house - Ed
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I am being bought out of the morgage befor the sale of the house

I'm not nit picking here. We just can't give you a good answer without understanding the question. Now it sounds like you've bought a property 30/70 with another party who now wants to buy you out. Maybe if you tell us exactly who gave whom what money and what that money was used for it will help.

Phil
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bigedd101: "I am currently in a joint ownership of my first mortgage. I own the 30 % of a 30/70 venture. My partner has asked me to leave and has offered to pay me 33000 of the 110000 principal. Are there any tax implications to this? Should the house be sold and then the equity transferred at that time? What course of action is best to insure value? Thanks in advance- Ed

pmarti: "I'm confused. If you invested in a mortgage and are now selling your interest you have a capital gain or loss just like any other investment. Your basis is what you invested minus the principal portion of the repayments.

If this isn't what's going on, please clarify."


bigedd101: "I am being bought out of the mortgage befor the sale of the house - Ed"

I am confused, too. Does your venture own the house subject to a mortgage or does the venture own the mortgage (i.e., is the lender a/k/a holder of the note)?

If you own the mortgage, what does the sale of the house have to do with anything.

Also, is there an actual joint venture, with assumed named filing, or do you individually own an undivided 30% of whatever asset it is that you own.

Confusedly, JAFO
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I am being bought out of the morgage befor the sale of the house - Ed


I hope you mean that your partner is refinancing the mortgage on his/her own. You can't be "bought out" of a current mortgage. If you just get the money and go away and something happens and your partner doesn't pay the current mortgage, you are still responsible for it.

Barbara
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