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Author: bigedd101 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121095  
Subject: household question Date: 11/5/2003 9:43 AM
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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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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 67435 of 121095
Subject: Re: household question Date: 11/5/2003 10:22 AM
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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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Author: bigedd101 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 67436 of 121095
Subject: Re: household question Date: 11/5/2003 11:03 AM
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I am being bought out of the morgage befor the sale of the house - Ed

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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 67437 of 121095
Subject: Re: household question Date: 11/5/2003 12:38 PM
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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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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 67438 of 121095
Subject: Re: household question Date: 11/5/2003 12:47 PM
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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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Author: numbrel Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 67444 of 121095
Subject: Re: household question Date: 11/5/2003 5:33 PM
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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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