Buy Out tax questions...
One of my husband's in-laws worked for a company & was offered a buy out. The company couldn't pay him up front, so they worked out a payment plan over several years. By taking the buy out (he owned part of the company - NOT stocks), he no longer works for the company. The company is paying 5% interest for the life of the payments. Does anyone know if this is considered a loan where he only pays taxes on the 5% or will it be income? He lives just outside of New York City.
ETA - he is in his early 40s, so it is not retirement - just in case that matters!
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Last edited by SenoraE; 01-30-2012 at 05:05 PM.