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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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‎June 8, 2022
12:47 PM