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Posted by Cranky Tenant on January 03, 2002 at 15:23:10:

In Reply to: Cash settlement by landlord for vacating -- best way to arrange it posted by carlson on January 03, 2002 at 12:58:39:

Strange. Despite the recession there seems to be a flurry of LLs looking to buy out tenants.I just got a phone call from my LL trying to buyout my apartment ..... again. Last time we discussed buy outs he offered to pay me cash in advance. Since I didn't plan on stuffing my mattress with the money I didn't see any clear advantage.

I would strongly suggest considering where you want to go and what you intend to do with the money. Having a lawyer handle buy outs is probably a good idea and you might want to consult with an accountant. There are tax benefits to owning a home. It's possible you might be able to offset the tax if you decide to purchase something within a set amount of time.

: I expect to receive a cash settlement from my landlord in return for giving up possession of the NYC apartment I live in.

: Other than receiving the money as a 'lump sum,' and having to lose a significant portion of it to taxes, are there any other ways I can arrange to be paid that will shelter it?

: (I'd prefer not to become involved in any 'installment' arrangement since I will probably not stay in NYC, therefore will be in a bad position should problems with that arrangement later arise.)

: I'm 52 years old and single. As 'normal income' the settlement would appear to be 30% taxable (based on 2002 rate tables). In the past, I've generally paid at the 15% rate.

: Thanks very much.

Follow Ups:

• Re: Cash settlement by landlord for vacating -- best way to arrange it Lurker-Owner 01/04/02 (0)

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Comments:
: Strange. Despite the recession there seems to be a flurry of LLs looking to buy out tenants.I just got a phone call from my LL trying to buyout my apartment ..... again. Last time we discussed buy outs he offered to pay me cash in advance. Since I didn't plan on stuffing my mattress with the money I didn't see any clear advantage.

: I would strongly suggest considering where you want to go and what you intend to do with the money. Having a lawyer handle buy outs is probably a good idea and you might want to consult with an accountant. There are tax benefits to owning a home. It's possible you might be able to offset the tax if you decide to purchase something within a set amount of time.

: 
: : I expect to receive a cash settlement from my landlord in return for giving up possession of the NYC apartment I live in.

: : Other than receiving the money as a 'lump sum,' and having to lose a significant portion of it to taxes, are there any other ways I can arrange to be paid that will shelter it?

: : (I'd prefer not to become involved in any 'installment' arrangement since I will probably not stay in NYC, therefore will be in a bad position should problems with that arrangement later arise.)

: : I'm 52 years old and single.  As 'normal income' the settlement would appear to be 30% taxable (based on 2002 rate tables).  In the past, I've generally paid at the 15% rate.

: : Thanks very much.


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