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If you buy a piece of real estate for $100,000 and then sell it for $500,000; you are subject to paying capital gains taxes on

If you buy a piece of real estate for $100,000 and then sell it for $500,000; you are subject to paying capital gains taxes on your {----------} profit.

1.

$400,000

2.

$600,000

3.

$100,000

4.

$500,000

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