How Does This Work!?

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Let's say I buy a house for 20K, borrow 40K from the bank, turn around sell the house for 40K and then pay off note at the bank.......would we still have capital gains tax??? Thanks :-)

Comments(0)

  • myfrogger31st August, 2004
    0
    Reply

    Yes, capital gains is based on what you bought the place for and what you sold it for.

    If you are selling the property within a year, the property is not subject to capital gains tax--rather ordinary business income.

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