How do i pay taxes on my assignment fee so that i dont have to owe the irs?

Too many of my elders reoccupied their rentals for 2 years at a time and then sold tax free so the irs cracked down on the rest of us. 

Here's the IRS Form 1040 Schedule E for Supplemental Income and Loss: https://www.irs.gov/pub/irs-pdf/f1040se.pdf.

The LLC will be taxed as a partnership and will not be considered as a disregarded entity for IRS purposes.The asset we are purchasing will be a condo in Colorado (we live in CA).

@Jessica KirkpatrickConsider also that capital improvement needs to occur and we can all better educate ourselves by looking at the IRS website to understand what that law requires.

  $420,000 in 15 years (not including interest earned in a savings account).Pretty cool program since borrowers can refinance as many times as they want and the IRS/RESPA has deemed rebates legal, tax free, and good for competition.This is obviously a very basic overview but very lucrative and beneficial for the borrower.I look forward to meeting and interacting with you all!

That is because the IRS does not count money the way you might - but their way is not dumb either - annoying, but it makes sense and usually works out better, because there are sometimes limits to losses that can be claimed or at the very least, it is one more pain in the butt to keep track of those too and carry them over until they are all accounted for.

The only people that know who owns property is then IRS and state tax department.

If you buy a place for $1MM, take $200k of depreciation and then sell for $1.5MM, the IRS considers you as having made $700k, not $500k.

Any difference between the price and Fair Market Value would be considered a "gift" by the IRS and therefore be taxable.