We are being bought out of our apartment lease after 2 months by a new owner. How is that money taxed, as income or some sort of capital gains?

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We are being bought out of our apartment lease after 2 months by a new owner. How is that money taxed, as income or some sort of capital gains?

yes it's taxable under IRC section 1241. since the lease is personal and not business (not section 1231 property) it would be ordinary income

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