|
Posted by Seth on July 18, 2007, 5:12 am
Please log in for more thread options
>> A potential condominium purchaser wants possession of same
>> prior to the end of a renter's lease. In order to accomplish
>> this, he has offered the lessee a substantial sum to vacate
>> the apartment prior to the end of the lease.
>>
>> Would this be taxable income to the lessee? If not, would
>> it affect the determination of the lessee's (currently
>> established) status as a dependent?
> In essence the purchaser wants to buy the lease, which is a
> type of property. The tenant basically has a zero basis, so
> anything paid for transferring the lease would be taxable.
> If the lease is over a year old I'd think it could be long
> term capital gain.
Is there a way to structure the transaction to avoid
taxability?
For instance, if the buyer offers to pay the tenant's moving
expenses, is that taxable? The move is made for the benefit
of the buyer.
What if the buyer subsidizes rental of another apartment for
the tenant (perhaps without even telling the tenant)?
Seth
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap