Q: Landlord is offering my parents 50k to move out Is this taxable.
My parents have been living in a home that had water isues a year ago in may17
The landloard has taken almost a. Year to fix the isues and my parents stoped paying rent for 7 months due to not having a kitchen or living room due to the isues.
They have agreed that they keep the rent monwy and landlord will give then 50k and 1 month to move out.
Is this money taxable
How can we procedd
The landord will give them a check for 50k
How can my parents be protected so the landord doesnt try to sue them later on for back rent py or something
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A:
Yes, the money your parents receive from the landlord to move out is taxable. It will be considered as a capital gain, and they will need to pay taxes on it. The amount of tax they owe will depend on their income and filing status.
To proceed, your parents should get a written agreement from the landlord that states the terms of the deal, including the amount of money being paid, the deadline for moving out, and any other relevant details. They should also keep copies of all correspondence with the landlord, including emails, letters, and text messages.
To protect themselves from being sued by the landlord later on, your parents should make sure that the agreement is in writing and that it includes a clause that releases them from any liability for back rent or other damages. They should also get the agreement notarized.
Here are some additional tips for your parents:
* Get everything in writing.
* Make sure the agreement is fair.
* Get the agreement notarized.
* Keep copies of all correspondence.
* Be prepared to move out on time.
If you have any further questions, you should consult with a tax advisor or an attorney.
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