Is it legal for a landlord to pay a tenant to move out of his apartment?
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Is it legal for a landlord to pay a tenant to move out of his apartment?
I’m a senior citizen and live in rent control apartment. My landlord offered to pay me to move out. On a the surrender agreement, it stated landlord pay tenant this amount to surrender the lease agreement. How’s the money received by the tenant be treated for tax purposes?
Asked on February 11, 2012 under Real Estate Law, New York
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
There is nothing illegal or improper for a landlord to pay a tenant to move out of his or her apartment in a timely manner. Such payments occur quite frequently for assorted reasons.
For tax purposes, if the landlord does not issue you a 1099 for the move out payment, I would treat the payment as a rental rebate of money already paid and treat the payment as a non-taxable event.
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