"Buy-Out" due to separation

In 2007 I refinanced house in my name only to "buy-out" my partner ($65K). Wondering how this affects my deductions?? Are the $65K considered a loss to me??? Lastly, eventhough I refinanced, is this technically considered a home purchase since I put everything in my name and went through the typical escrow process? Thanks!

Lizhelp,

You purchase the other half of the house for $65,000. Your basis in the hous is now $65,000 plus what you originally paid. There is no loss today.
You would need to sell the home for less than your basis to have a loss.
Our home is considered personal property and as such we can not claim a loss for tax purposes.

You may have some Schedule A Deductions because you refinanced the mortgage.