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As this is your personal residence it would not matter if the attorney hangs on to the settlement or you bank it till you move, it does not qualify for any reduction based on your getting into another rent program.
The buyout can be capital gain instead of ordinary so that is good for you. The long term capital rates are lower than ordinary income rates.
A lease for a rent-stabilized apartment is a contract, and any profits from the sale of a contracts are recognized as capital gains.
You will report this in the year the buyout happens.
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