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Subject:  Re: Not everyone gets a tax rebate Date:  6/12/2001  5:13 PM
Author:  Squawk1200 Number:  153195 of 910558

Or by selling a mansion you've lived in for less than a year for a
$2,000,000 gain?

You would owe capital gains taxes on $2M in this case. You must own the home for >= 2yrs in order to get the capital gains exemption.

Exactly. And it would be taxed at the regular income rates (since it's short-term), but there wouldn't be any payroll taxes owed.

Perhaps the seller could get the $2M profit in cash and use his $300 tax rebate to but a nice suitcase to carry it around in. ;)
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