Avoid taxes on your tobacco buyout payment

摘要

With the effective date of the Tobacco Transition Payment Program (tobacco buyout) approaching, tobacco quota owners may want to speak with their accountants or tax advisors to review the tax consequences of receiving their payments. In most instances, recipients are going to be taxed at the federal and state capital gains tax rates—which means that up to one-fourth of the payment received could be going back to the government in taxes.