Comment on This boomer couple would be hit with $700,000 tax bill if they sold their mansion

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Wrufieotnak@feddit.org ⁨17⁩ ⁨hours⁩ ago

To explain in a nicer way where your error in thinking is:

You don’t pay the taxes specified in the article on the whole amount of money you get for selling your house, only on the increased value compared to when you bought it.

So as example: you but the house for 1 million and sell it later for 2 million. Then the tax on the article is only applied to the 1 million difference, so you only give away part of the money that you got in addition to the value you bought the house for. So you always end up with more money than you paid for the house, just not the full value.

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