Is this a capital gain?
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