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It was breath-taking"…nearly 50% of the revenue" would go to State, local and Federal taxes. The year you sell the house, you need to pay tax so the federal government can ‘recapture' all of the depreciation you claimed over the past X years that the property has been a rental. Which means even if you buy a house for $600k and sell it for $550k, you may still owe taxes if you have been depreciating it for a few years. Paid 2 1/2% to listing and shopping for agent each.
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