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Old 08-24-2012, 04:41 PM
whell whell is offline
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Join Date: Aug 2010
Location: Metro Detroit
Posts: 13,135
Quote:
Originally Posted by d-ray657 View Post
If you buy a $1000 property, put $100 into it and sell it for $1200, you've made $100 income from it.
No you haven't. If you buy $1000 in property, you must also pay tax on it. You then pay tax on it every year that you hold it. You then pay tax again at sale time on any gain. You're lucky if you break even.
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