AdamNe
Employee Tax Expert

Get your taxes done using TurboTax

Hello @hongto !

 

Thanks for the question. 

 

In most situations I have seen, buyouts like these are considered "other" taxable income, and the payer issues a 1099-MISC to the payee. This income will be subject to your highest ordinary income tax rate (not a lower capital gains rate), so keep this in mind when negotiating! 

 

All my best, 

Adam, EA

TurboTax Live Expert

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