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I have a Landlord, Tenant and Subtenant situation. The

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Hi - I have...

Hi - I have a Landlord, Tenant and Subtenant situation. The tenant holds a 50 year lease with the landlord. The tenant is looking to sell his Tenant rights and assign the lease. Are these receipts by the Tenanct Ordinary Income or Capital Gain. Thanks

Submitted: 8 months ago.Category: Tax
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Answered in 8 minutes by:
11/13/2017
Tax Professional: Fred Rook, Certified Public Accountant (CPA) replied 8 months ago
Fred Rook
Fred Rook, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 149
Experience: 20+ years as a Certified Public Accountant, including 19 years working in public accounting firms with extensive tax, audit, write-up and consulting experience.
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Hello. My name is ***** ***** I can help you. If the lease was less than 50 years, my answer would be more complex. However, since the lease is 50 years, this is considered a "long lease," therefore this transaction would be a capital gain. Let me know if this answers your question, or if you have any follow up questions for me. Thanks!

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Tax Professional: Fred Rook, Certified Public Accountant (CPA) replied 8 months ago

Hello - just wanted to see if you had any follow up questions for me. If finished, please take some time to rate my service. Thanks!

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