Legal Question in Real Estate Law in Massachusetts

Massachusetts - I own a residence with another party.... 50/50.........we have agreed that I will buy the other Owner out. We have agreed upon price and there are no further complications. Existing mortgage will be paid off 100 % as part of the transaction, there are no other interests. Other than getting the deed revised so that it shows me as sole Owner, I believe I will need documentation showing the new agreed upon price so that when I sell the property in the future that a portion of my capital gain is measured against the new value. I may also need some documentation indicating that my partner has paid tax (capital gain) due on what I pay him now to gain Ownership. I need to avoid duplicating tax payments when I sell the residence.


Asked on 10/14/14, 1:22 pm

1 Answer from Attorneys

What you need is a formal closing of the sale. If the property was not your partner's primary residence, then you need to provide him with a 1099 for the sale proceeds he receives. Other than that you do not need to know if he paid a capital gain. You need to send a copy of the 1099 to the federal government.

If you are using a closing attorney, then the closing attorney should prepare the 1099 and file it as well as give your partner a copy. Ideally you should have a HUD or closing statement for the transaction.

If you do not have an attorney involved in this transaction, you should.

Good Luck

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Answered on 10/14/14, 1:31 pm


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