40/60 Condominium _best_ -

But if the profit is $600,000? The 60% owner’s share is $360,000. They pay capital gains on $110,000 ($360k minus $250k exclusion). The 40% owner’s share is $240,000, which is fully excluded. The 60% owner writes a check to the IRS. The 40% owner does not. Cue the argument. After all the legal scaffolding, the 40/60 condo succeeds or fails on a single question:

The 40% owner cannot force a sale in most TIC jurisdictions unless the co-ownership agreement includes a partition clause . Without it, the 40% owner is stuck owning a phantom asset they can’t live in and can’t sell. 40/60 condominium

Conversely, the 60% owner may cover the $12,000 special assessment for a new roof. Under standard Tenancy in Common (TIC) rules, that 60% owner just increased their stake to 62%, because they paid 100% of the assessment. The 40% owner now owes the 60% owner a proportional debt—unless the agreement says otherwise. But if the profit is $600,000

But when it works—when the down payment is acknowledged, the expenses are tracked, the exit is pre-negotiated, and the power is shared with grace—it is the most flexible, intelligent tool for two people with unequal resources to build equal peace of mind. The 40% owner’s share is $240,000, which is fully excluded