Structuring partnership exith with cash buyout
Seeking guidance on how best to exit a partnership mid-flip and the tax implications I should prepare for.
Detail and timeline
- I bought a duplex in January for cash - standard closing with the buyer
- In May I let a partner buy into the deal with cash and had his name added to the deed
- there was no recorded transfer of $$ at this closing
- My partner is now offering additional cash to buy me out of the partnership and take over 100% of the deal
Hoping to better understand at a high level what the typical path forward would look like in this scenario ?
Most Popular Reply
I'm not an expert on the tax part, but it sounds like this would be short term gains if he buys you out. I believe, if you want to be bought out, you can just record the sale like any other. Probably you need an attorney to make sure everything is square.