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If there are several co-owners - we will need to examine transactions SEPARATELY for each owner.
When ONE owner sells his/her share - THAT transaction is reported on his tax return.Correspondingly - THAT seller will realize capital gain.Other owners would NOT be affected.
So far - for the "buy out" agreement - we need to know the price paid to the departured co-owner - and THAT person will report on form 8949 the disposition of the property as (selling price) MINUS (adjusted basis)
Let me know that selling price - and I will help to estimate expected tax liability.
Correspondingly for other owners - the price they pay for the "buy out" agreement will be their basis in purchased part of the property - that basis will be used when they eventually will sell the property.
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