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Capital gains is a tax on the profit made from selling an item higher than what you paid for it. If the house appraised at 2 mil and you pay tax on the 2 mil then when you sell it for 2 mil you had a net gain of ZERO. If you sell it for 1.75 mil (since most prizes are valued at full retail asking price) then you had a net loss and may even get to declare the loss on your taxes (disclaimer on this last part: I am not an accountant but I did sleep in a Holiday Inn).
I'll take 1.75 mil minus 700,000 -105,000 (RE fee) = 945,000 as opposed to 667k any day.
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Joe
See Porsche run. Run, Porsche, Run: `87 911 Carrera
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