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Eva Rosenberg , an enrolled agent who maintains the site, warns of a standard downside she sees in states like New York and California, where costs have risen a fair bit. Individuals borrow in opposition to their houses, spending the money and draining the equity. Then, when they promote and receive, say, $50,000 after repaying their mortgage and home equity loans , they assume that is their capital gain. However it is not, and sometimes their tax invoice is definitely a lot greater than that $50,000.

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