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What do you mean by over the term of the new lease ... I

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have month to month and...
what do you mean by over the term of the new lease ... I have month to month and then a 6 month lease and I may in the future purchase a home.
Is purchasing a new home to my advantage with capital gains . Does it matter that it is in Florida?
Submitted: 1 year ago.Category: Tax
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Answered in 36 minutes by:
7/12/2016
Tax Professional: Mark Taylor, Certified Public Accountant (CPA) replied 1 year ago
Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
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I would assume who ever bought out your lease, went and lease the property to new tenants. If this is the case the lease buyout would be spread out over the term of this new lease. Does this make sense?

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Customer reply replied 1 year ago
yeah but its probably a year or two lease
Customer reply replied 1 year ago
its not letting me rate you with stars I want to give you 5 stars for each one
Tax Professional: Mark Taylor, Certified Public Accountant (CPA) replied 1 year ago

I am not sure why that is the case. Please let me know if you have any other questions.

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Tax Professional: Mark Taylor, Certified Public Accountant (CPA) replied 1 year ago

Here is what I found regarding a buyout. A rent-stabilized tenant is entitled to successive renewal leases as long as he or she complies with the terms of the lease, that entitlement is considered a property right and would be treated as a capital asset. Since you have been in occupancy for more than a year — the period required for capital gain to be treated as long-term — the payment would be subject to federal taxes at a maximum rate of 20 percent instead of the maximum 39.6 percent rate for ordinary income.

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