Selling to a co-owner

[william1013]

I currently own a home with my father that we together inherited 8 years ago. We have rented it out in years past but now we have decided to have him buy my half of the interest of the property so I can purchase my first home . The house is worth approximatly $500,000. I am wonder what the best way to do this to incur the least amount of taxes and fees.

[Mr. Knowitall]

As it was not your principal residence, and was an income generating / investment property, it will likely benefit you to obtain professional advice in relation to tax avoidance. You should consult a tax lawyer or CPA about possible ways to avoid taxes (e.g., a Section 1031 "like kind exchange").