Posted by chelsea on March 13, 2001 at 14:34:14:
In Reply to: Money to Vacate posted by Sue on March 12, 2001 at 13:48:46:
Here is an answer posted to a similar question on this forum a couple of years back (below)
By the way, I wouldn't necessarily follow the advice about not hiring a lawyer or accountant who doesn't immediately answer your question a certain way. Careful lawyers and accountants look things up. Tax laws change all the time, and there's not always one "correct" approach.
In Reply to: Housing Court deals posted by Jean F on March 04, 1999 at 00:03:02:
The Internal Revenue Service says that buy-out payments like the one you describe are taxable gains. That means the 20%
maximum rate on long term capital gains applies if you have lived in the apartment for at least a year. Don't forget to add state
and city taxes also to figure out how much will be left after the government takes its share.
Some argue that leasehold buyouts fall within the exclusion of gain for the sale of a residence. So far IRS does not agree, but at
least one tenant has successfully the point in the small claims division of the Tax Court.
: I'm a NYC rent stabalized tenant and just had my first day in Housing Court yesterday. The landlord's lawyer offered to forget
the 3 months rent and pay me extra, like a couple of thousand, to move out soon. I lost my job, I can live with my brother for
awhile. Is any of this money, the rent part or the extra part, taxable? If I can get them up to say $4000 and I can keep all of it,
then its $4000. If theres tax, its
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