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IRS Treatment of Lease Buy-Out Income
by Trish
(NC)
I'm in NC and own land that is leased to a cell tower company. I've been approached about a lease buyout and am interested only if I can sell the land as well. Does anyone have any idea or experience as to how the IRS treats lease buyouts for tax purposes? Hopefully, it can come under capital gains rates and not be taxed as regular income...of course, ideal would be no tax at all, but I haven't found anything that's ideal lately! I realize you are not attorneys, but the answer to my question is probably general knowledge for anyone with experience with cell tower buyouts.
Also, is there a way for me to find out the number of tenants on the tower; my lease is with one company, but they have the authority to sublease and aren't obligated to give me that information.
Thanks.
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