Posted by MoniqueUSA on August 04, 2002 at 12:42:28:
Of course, JHyre is the tax man, but here goes …
If you are ASSIGNING a L/O contract, where you never owned the property, your $5000 assignment fee would be taxed as ordinary income. That is, you would owe Federal Income Tax at whatever tax bracket you are in (say 28%, for instance), State Income Tax, FICA (unless you’ve already exceed the max for the year), and Medicare.
MoniqueUSA