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How Much Is Capital Gains Tax on Real Estate? Plus: How To Avoid It How Much Is Capital Gains Tax on Real Estate? Plus: How To Avoid It What is a capital gains tax? It s the income tax you pay on gains from selling capital assets such as a home. Here s what you need to know. Margaret Heidenry, provided by FacebookTwitterEmail Capital gains tax is the income tax you pay on gains from selling capital assets including real estate. So if you have sold or are selling a house, what does this mean for you? If you sell your home for more than what you paid for it, that s good news. The downside, however, is that you probably have a capital gain. And you may have to pay taxes on your capital gain in the form of capital gains tax.

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