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Because of this even when you buy a home for $600k and promote it for $550k, you may still owe taxes you probably have been depreciating it for a couple of years. It was breath-taking"…nearly 50% of the revenue" would go to State, local and Federal taxes. The year you promote the house, you need to pay tax so the federal government can ‘recapture' the entire depreciation you claimed during the last X years that the property has been a rental. Paid 2 half of% to listing and buying agent every.
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