I currently own 30% of my house.Am I any different than anyone else in regards to capital gains taxes?

Question

The co-owner and I are tenants in common. He is buying my 30% of the house. If I am staying *well* under the allotted $250,000 exemption, do I need to worry about paying taxes on my profit from my portion of the home?

2nd Question: we have finalized the buy-out in terms of cost to him and taking over the entire loan, etc. All the financial stuff is in order. Now we just need to file our grant deed with the county in order to transfer the title. Does anyone know if in San Francisco, is the transfer tax based on my profit from the sale (e.g. my equity that he bought from me), or is it based on the total worth of the 30% that I am transferring to him. Hmmm, too hard to explain perhaps...

Answer 1

Transfer taxes are based on the sales price, not the profit from the sale.  

As far as capital gains tax, you are exempt from $250,000 of capital gains on your principal residence that you owned and lived in for two years in the five year period prior to the sale.  If this applies, you do not report the sale on your income tax.