Tax consequence of buying out co-owner of investment property?

[Troy Chronister]

A friend and I are co-owners of a rental property that we have owned for many years as Tenants in Common.  Our long-term tenant is moving out and my co-owner wants to cash out.  I am considering buying him out and keeping the property as a rental.   My goal is to keep my investment in the property.  If I refinance to buy him out and we have a closing to drop him from the title, will this transaction trigger any tax consequences on my end?  I would also prefer to add my wife to the title as long as this does not create any additional tax implications.