[d13hard]

Brilliant! My advice is to stay in cash (or equivalent).

you'll need it to pay the IRS + state their 50% (if for example, you are a california resident). oddly enough lots of people forget about this simple fact. depending on how the deal is structured, there is a good chance that your tax bill is $1 million. oh by the way they then adjust your next year's taxes upwards and want quarterlies...so leave some money for those (you will get most of it back since your gain is non-recurring)

but still, you're a millionaire.

edit: whoops! i see you say you are in canada. well i suppose the tax situation is likely comparable....

[vaksel]

canada is probably even worse

[cperciva]

If he structured things properly, this is capital gains -- in which case he's probably got $750k tax-exempt and the rest is only 50% income, so his total income tax (federal + provincial) would be somewhere in the $500-600k range depending on which province he's in.

[Tichy]

Maybe there are ways to stretch the gains over several years by clever investment?