SUMMARY PLAN DESCRIPTION
For instance, if a married taxpayer’s gain exceeds $500,000, then the excess will be taxed at 20%. The 25% tax on the depreciation amounts to a 5% tax increase, but the current deduction could be worth as much as 39.6% on the federal tax return. The depreciation subject to a 25% tax, however, should not diminish the $500,000 tax-free portion. ................
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