Skip to content
Tax, SDIRAs & Cost Segregation

User Stats

6
Posts
0
Votes
N/A N/A
0
Votes |
6
Posts

Is this a capital gain?

N/A N/A
Posted Aug 3 2008, 10:52

I'm involved in an assignment or a double closing. Party A is selling her home ( personal not eligible for 1031 I dont think) for 375,000 to party B, then B will sell it or assign it to Party C for a FEE of $50,000.
I'm guessing Party B has to pay Capital Gains tax on $50,000 whether this is an assignment OR a double closing, is that right?? Am I correct in thinking this will be a Capital Gain? or is it Ordinary income. What form is used to report these type of fees, Sch D, or F 4797 or what else? Is there a more tax efficient way to do this? Thanks

Loading replies...