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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Landlord-Tenant
Satisfied Customers: 41221
Experience:  Licensed in multiple jurisdictions. Experienced Landlord-Tenant attorney.
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I live in my Manhattan apartment for almost 10 years. My

Customer Question

I live in my Manhattan apartment for almost 10 years. My landlord sold the building I live in (I rent) to a much larger company. As an incentive for me to leave they cut me a check for $50,000. How much will I owe on taxes on this deal?
Submitted: 5 years ago.
Category: Landlord-Tenant
Expert:  Dimitry K., Esq. replied 5 years ago.
Thank you for your question. I will do my best to assist you with your concerns. If you would like me to clarify my answer, I will be happy to do so.

To answer your question, you would owe based on your tax rate for the year you received the funds. The $50,000 is tacked on as additional income to you on your tax return, and as an aggregate it would increase your annual wage by that amount. If you could tell me approximately how much you earn, I can give you a better answer, but without knowing your wages and earnings for the year, it is not possible to estimate this value. What I can state is if you file married or single and make more than $388,350 per year, the funds you receive will be taxed at 35% for 2012.

Good luck.

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