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It was breath-taking"…virtually 50% of the revenue" would go to State, local and Federal taxes. The year you promote the home, you must pay tax so the federal government can ‘recapture' all of the depreciation you claimed over the past X years that the property has been a rental. Which means that even in case you purchase a house for $600k and promote it for $550k, you should still owe taxes when you have been depreciating it for a number of years. Paid 2 half% to listing and buying agent every.
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