I live in a rent controlled apartment in NYC and am being bought-out by my landlord. I inherited the apartment by law from my aunt who held the lease there for over 40 years (I lived there with her for 9 of them). I am not on the lease. My concern is that the sum of the buyout might be greatly reduced by taxes which would make the value of the transaction questionable for me. I want to make sure that there is no 1099 issued because, from what I've read, many in the know believe the buyout can be claimed as a capital gain. Basically, I want to include terms to this effect in our settlement contract.
My main question is: what are ways that I should request that the landlord report this transaction to the IRS, in order to mitigate my tax burden, and is it necessary for them to report it at all?