Two on title down to one? Any Capital gains?

[David Roe]

If two people are on title of a free and clear house. After rehab and refinancing and closing the house is titled into one of the two people at the refinancing. There’s no capital gain shown due to it being a cash out refi right? The removed person have to pay any since they are no longer on title? Anyone done this? I have heard about it just haven’t done it. Any issues?