I got this male puma the other day from the pound. He was already in the teen level range so being a newbie, I figured he'd be useful in the game to help me progress. I noticed that he is a GP1 but also a Degen1 since his parents were related.

http://beastkeeper.com/pet/122069

I also have this female puma that is a GP1

http://beastkeeper.com/pet/419627

My question is that if I breed these two together at level 50 each, will the offspring be an GP2 with 1DeGen or just GP2 with the degen dissapearing?

The offspring will be GP2 and probaly have a red stat, but for the most part you will probaly breed the degen out.  Here is something that might help.

GP0 lv. 50 x GP0 lv. 50 = GP1 baby

GP1 lv. 50 x GP1 lv. 50 = GP2 baby

GP2 lv. 50 x GP2 lv. 50 = GP3 baby

Some things may be different life if you have to GP3s and you breed them when they are not lv. 50, you might get a GP1 or GP2 baby.

Thanks! That helps a lot since I couldn't find a clear explanation on if it can be bred out.