Net losses of either type can then be deducted against the other kind of gain. The table below breaks down 2022 short-term capital gains tax rates by filing status: Note that the mortgage interest and property taxes are itemized deductions. If you sell an asset after owning it for more than a year, any gain you have is typically a "long-term" capital gain. Nonbusiness taxes may only be claimed as an itemized deduction on Schedule A (Form 1040), Itemized Deductions. And as the Internal Revenue Service points out, just about everything you own qualifies as a capital asset. Learn how to navigate the tricky tax laws around investment properties, including ways to save. Do this in a businesslike manner and with the intention of making a profit, and the IRS will view it as a business. Im a TurboTax customer The basic answer is "yes." But if you do a remodel that adds value to your home, the remodeling cost can be deducted from your capital gains. Capital losses. (A third way,estate tax, applies only to dead investors.). Tax-loss harvesting involves selling off assets at a lower price to offset capital gains. Here's a rule of thumb for figuring capital improvements: If you can carry the improvement out of your house (a new refrigerator or microwave), it's not a capital improvement. As an individual, your deduction of state and local income, sales, and property taxes is limited to a combined total deduction of $10,000 ($5,000 if married filing separately). Depreciationis the process of claiming a deduction to compensate you for the propertys decrease in value during the year. As with property taxes, you can deduct the interest on your mortgage for the portion of the year you owned your home. If the amount you realize, which generally includes any cash or other property you receive plus any of your indebtedness the buyer assumes or is otherwise paid off as part of the sale, less your selling expenses, is more than your adjusted basis in your home, you have a capital gain on the sale. For 2022, the capital gains tax exclusion limit for the sale of a home The payments on these loans may appear to be deductible real estate taxes; however, they're not deductible real estate taxes. Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type. The content on this site is not intended to provide legal, financial or real estate advice. If youre flipping the property and youve owned it for less than a year, you pay short-term capital gains tax, which is the same rate as your marginal income tax rate. The buyers can deduct $408 ($620 $212) as an itemized deduction, the taxes for the part of to see whether you might qualify for a home mortgage interest expense deduction. Finally, look for the rules of this exemption to possibly change in a future tax bill. Expect to pay property taxes to local and county governments each year. Short-term gains come from the sale of property owned one year or less andare typically taxed at your maximum tax rate, as high as 37% in 2022. The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest. Backed by our Full Service Guarantee. What is Tax Assessed Value, Tax Appraised Value, and Market Assessed Value? WebCapital Losses. Guide to Short-term vs Long-term Capital Gains Taxes (Brokerage Accounts, etc. Capital losses can be But it will acquaint you with the basic terminology so you can be better prepared for a meeting with your tax adviser. Arm's length Capital gains taxes are assessed on profit you make on the sale of the home. See. It all depends on what you put in. A gain is considered to be short-term if you held the asset for less than one year prior to selling it. Posted on 26 Feb in delores winans grandchildren. How and when CGT is triggered, such as when an asset is sold, lost or destroyed. The rate you pay would depend on your income and filing status. So if you were dutifully paying your property taxes up to the point when you sold your home, you can deduct the amount you paid in property taxes last year up to $10,000. The difference between them is business income, subject to, Limited interest and dividend income reported on a 1099-INT or 1099-DIV, Credits, deductions and income reported on other forms or schedules (for example, income related to crypto investments), Our TurboTax Live Full Service Guarantee means your tax expert will find every dollar you deserve. Assuming a 15% capital gains tax, deducting The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. (What it cost you to purchase it) If this The over-55 home sale exemption has not been in effect since 1997. Acquisition debt vs. home equity debt: What's the difference? Adding the furniture to the cost basis Long-term gains are treated much better. You pass these tests if youve owned and used the home as your primary residence for at least two out of the five years prior to the sale. Capital gains are the profits you make when you sell a stock, real estate or other taxable asset that increased in value while you owned it. The capital gains tax is based on that profit. The long-term capital gains tax rate is typically 0%, 15% or 20%, depending on your tax bracket. You do not have to pay capital gains tax until youve sold your investment. Above that income level, the rate jumps to 20 percent. The schedule must be filed with your tax return. Their taxable gain is equal to WebMake your vacation home your primary residence: To be eligible for the $250,000/$500,000 exemption on the tax gain, you must have lived in a home for two out of the last five years before selling. The charge must be uniform against all real property in the jurisdiction at a like rate. matching platform based on information gathered from users through our online questionnaire. SmartAsset Advisors, LLC ("SmartAsset"), a wholly owned subsidiary of Financial Insight Technology, **Say "Thanks" by clicking the thumb icon in a post. Before unloading a vacation or rental property, its important to understand how capital gains on the sale of a second home work. 1. If youre in the 28% tax bracket, youll pay a 28% tax on short-term capital gains. Most individual investor landlords can deduct up to $25,000 per year in losses on rental properties, if necessary (subject to income limitation). You must also have a general grasp of some abstract concepts like calculating your tax basis, as well as the depreciation of capital investments. For more information on basis and adjusted basis, refer to Publication 523, Selling Your Home. First, most home staging costs qualify as advertising expenses. Refer to Publication 936, Home Mortgage Interest Deduction and Can I Deduct My Mortgage-Related Expenses? But theres a catch, and it all boils down to timing. Im a TurboTax customer Estimating how much you might pay using a capital gains tax calculator can help you develop the right strategy for carrying out the sale while minimizing what you might owe in taxes. The holding period is the amount of time that you own the property before you sell it. Any prior year's state or local income tax you paid during the year. Photo credit: iStock.com/FabioBalbi, iStock.com/Morsa monkeybusinessimages, iStock.com/Ridofranz. The amount you realize on the sale of your home and the adjusted basis of your home are important in determining whether you're subject to tax on the sale. We do not manage client funds or hold custody of assets, we help users connect with relevant financial advisors. To determine the amount of the gain you may exclude from income or for additional information on the tax rules that apply when you sell your home, refer to Publication 523. However, installing energy efficient equipment on your property may qualify you for a tax credit, and renovations to a home for medical purposes may qualify as a tax deductible medical expense. Losing money is never fun, but there is a silver lining. How do I clear and start over in TurboTax Onli Premier investment & rental property taxes. TurboTax Tip: Losses on your investments are first used to offset capital gains of the same type. The second tax bill you need to worry about iscapital gains tax. Depreciable items are generally those that are capital expenses. Special rules apply to certain asset sales such as your primary residence. Jean's adjusted When you buy investment property be it a building, a computer or a horse the IRS knows that the item wont stay young and new forever. If you have $50,000 in long-term gains from the sale of one stock, but $20,000 in long-term losses from the sale of another, then you may only be taxed on $30,000 worth of long-term capital gains. which usually consists of the property's cost plus related buying expenses. People in the lowest tax brackets usually don't have to pay any tax on long-term capital gains. Capital gains tax is often unavoidable when selling a second home but that shouldnt deter you from your plans if you feel the time is right to sell. Webwhat expenses can be deducted from inheritance tax what expenses can be deducted from inheritance tax. Estimate your tax refund and where you stand. WebCan renovation costs be deducted from capital gains? You can get up to $500,000 of your profit tax-free ($250,000 if single or married filing separately). They are typically taxed at ordinary income tax rates, as high as 37% in 2022. Long-term gains come from the sale of assets you have owned for more than one year. If you sell an investment asset for less than its cost basis, you have a capital loss. You must report on your return as taxable income any capital gain that you can't exclude. For example: If you have $50,000 Conversely, if you lost money on any investment or asset, you can deduct your loss from the capital gains you earned on the sale of a home to reduce the net amount of capital gains taxes you will pay that year. Costs of capital improvements can be deducted from taxes on gains when selling a home. Home sellers whose gains are less than the exclusion from capital gains wont benefit from deducting capital improvement costs. TurboTax Online: Important Details about Free Filing for Simple Tax Returns, See [5] In 2020 the capital gains tax rates are either 0%, 15% or 20% for most assets held for more than a year. MBA, Enrolled Agent. For this reason, these exchanges are called like-kind exchanges, in that the property you replace it with needs to be substantially similar to what you sold. Limitations apply. If you hold your mutual funds or stock in a retirement account, you are not taxed on any capital gains so you can reinvest those gains tax-free in the same account. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business. The deductible expenses have to be for improvements that last more than a year. Webwhat expenses can be deducted from inheritance tax what expenses can be deducted from inheritance tax. Let a tax expert do your investment taxes for you, start to finish. WebCan renovation costs be deducted from capital gains? And yes, these profits are taxed as income. Have questions about buying, selling or renting during COVID-19? Capital gains qualify for long-term status when the asset is held longer than one year. If this is a building, and you "Materially participate" you could claim expenses, such as gas or mileage. Only deduct the amount actually paid out of the escrow account during the year to the taxing authority. In every bracket, however, the IRS takes a smaller cut out of long-term gains than out of ordinary income or short-term gains. If your adjusted tax basis is higher than your sale, you have a capital loss. Get started, Find deductions as a 1099 contractor, freelancer, creator, or if you have a side gig Individuals who met the requirements could exclude up to $125,000 of capital gains on the sale of their personal residences. All features, services, support, prices, offers, terms and conditions are subject to change without notice. If you get a larger refund or smaller tax due from another tax preparer, we'll refund the applicable TurboTax Live Full Service federal and/or state purchase price paid. Therefore, the repainting costs are part of the capital improvements and should be capitalized and depreciated as the same class of property that was restored, as discussed above. The difference between short and long term, then, can literally be the difference between taxes and no taxes. If you financed the purchase of the house by obtaining a mortgage, include the mortgage proceeds in determining your adjusted cost basis in your home. Explore File your own taxes with expert help, Explore File your own taxes with a CD/Download, Capital gains aren't just for rich people, In most cases, your home has an exemption, TurboTax Online: Important Details about Free Filing for Simple Tax Returns, how long you owned the asset before selling, can typically be used to offset capital gains, See Security Certification of the TurboTax Online application has been performed by C-Level Security. If you get a larger refund or smaller tax due from another tax preparer, we'll refund the applicable TurboTax Live Full Service federal and/or state purchase price paid. I am a senior citizen. But if you do a remodel that adds value to your home, the remodeling cost can be deducted from your capital gains. That means you must declare it as income on your tax return and pay income tax on it. Written by a TurboTax Expert Reviewed by a TurboTax CPA, Updated for Tax Year 2022 December 1, 2022 08:27 AM. The capital gains outcomes are: Proceeds = 900,000. Unless you can show that you meet the ownership and use tests for the home, youd owe capital gains tax on this amount. For example, if a homeowner gets a tax credit for adding solar panels, the cost of the panels cant be deducted as a capital improvement. Sell your property when your income is low. That means costs for replacing wall-to-wall carpet arent deductible if, before selling the home, the owner replaces that carpet with new carpet or other flooring. The changes in the tax law will expire at the end of 2025 if Congress The standard deduction is $12,000 for single filers and $24,000 for married couples filing jointly. A financial advisor can help you figure out how to make capital improvements work within your financial situation. WebSave on capital gains tax by including your share of homeowners' association improvements. You can't deduct these taxes. If the new kitchen is of the same standard and layout as the old one, you can claim it against rental income. You may deduct only the amount of your total medical expenses that exceed 7.5% of your adjusted gross While you cant deduct the price of the home that you buy, you can deduct taxes, fees, interest, closing costs, as well as things like sales commission. $900,000 $756,000 = $144,000. Capital gains tax applies when you sell an asset for more than you paid for it. Refer to the Instructions for Schedule A (Form 1040) PDF for more information and for the optional sales tax tables. When figuring the holding period, the day you buy property does not count, but the day you sell it does. If you have more capital losses than capital gains, you can carry forward these capital losses into future years to offset future capital gains. For the 2022 tax year (meaning the taxes youll file in 2023), the standard deduction amounts are: : $12,950 for single and married filing separate taxpayers 4. See Taxes for local benefits in Chapter11 of Publication 17. Page Last Reviewed or Updated: 12-Oct-2022, Request for Taxpayer Identification Number (TIN) and Certification, Employers engaged in a trade or business who pay compensation, Electronic Federal Tax Payment System (EFTPS), Form 1099-S, Proceeds From Real Estate Transactions, Treasury Inspector General for Tax Administration. What will my credit score be after 6 months? If you have been paying annually since 2015, you may wish to amend your tax returns, if the additional itemized expense will make a difference in your tax liability. An official website of the United States Government. Just remember to keep track of every single home improvement receipt. The following amounts are also deductible: Generally, you can take either a deduction or a tax credit for foreign income taxes imposed on you by a foreign country or a United States possession. WebAny costs deducted against profits for Income Tax, see CG10260, are not allowable as a deduction for Capital Gains Tax. But rest assured that if you sold your home in 2021 (or are planning to in the future), your tax deductions when you file with the IRS can still amount to sizable savings. Although there are no additional tax benefits for reinvesting capital gains in taxable accounts, other benefits exist. However, homeowners who realize a gain on sale of their homes that is below the exclusion cap dont owe taxes on the gain. This means determining your cost basis in the property, which simply means how much you paid to purchase it and how much you subsequently invested in it while you owned it. Get year-round expert advice & every dollar you deserve, guaranteed with Live Full Service Premier. It is not Zillow's intention to solicit or interfere with any established agency relationship you may have with a real estate professional. Try using SmartAssets free advisor matching tool today to find advisors that serve your area. The IRS taxes the real estate portfolios of living investors in two primary ways: income tax and capital gains tax. Capital gains taxes range from 0% to 20%, depending on the sellers income and how long the property was owned. Wait at least one year before selling a property. Limited interest and dividend income reported on a 1099-INT or 1099-DIV, Credits, deductions and income reported on other forms or schedules (for example, income related to crypto investments), Our TurboTax Live Full Service Guarantee means your tax expert will find every dollar you deserve. For example, to qualify for the 0% capital gains tax rate youd need to earn less than $41,675 for 2022. For more information on tax shelters and gifting arrangements, see Guide T4068, Guide for the Partnership Information Return (T5013 Forms). If a portion of your monthly mortgage payment goes into an escrow account, and periodically the lender pays your real estate taxes out of the account to the local government, don't deduct the amount paid into the escrow account. File faster and easier with the free TurboTaxapp. Interest on home equity debt is no longer tax-deductible, Limits on tax-deductible acquisition debt, Landlords can deduct a big 'bonus' the first year, Up to 20% of rental revenue can be tax-free, Landlords can deduct more home improvements immediately, One negative: Some landlord losses are now capped. Get started. Your cost basis is usually what you paid for the item. If you wish to report an issue or seek an accommodation, please let us know. Can I transfer money from my IRA to my checking account? current If the house is a personal home and you have lived there several years, though, you may be able to avoid paying tax. These rules restrict your ability to use passive activity losses to offset capital gains elsewhere in your portfolio. Funds spend to improve a home can be deducted from the capital gains when a home is sold, potentially reducing capital gains taxes. If youre considering real estate as an investment, for example, you may choose to open a. Your cost basis is $225,000 ($200,000 to purchase it plus $25,000 in upgrades). To figure out the amount of annual depreciation expense, take the cost of the item being depreciated and divide it by 27.5. And the answer is: You bet! For 2022, the capital gains tax exclusion limit for the sale of a home is $250,000 for single filers or up to $500,000 for married couples who file a joint return. So, for 2022, the maximum you could pay for short-term capital gains on rental property is 37%. Depreciation of an asset can reduce your cost basis. You can get up to $500,000 of your profit tax-free ($250,000 if single or married filing separately). Capital gains taxes range from 0% to 20%, depending on the sellers income and how long the property was owned. Federal law excludes many gains on sales of primary residences from capital gains taxes. If you are married, that figure jumps up to $500,000. Security Certification of the TurboTax Online application has been performed by C-Level Security. When you sell a house, you pay capital gains tax on your profits. If you have deductions associated with the property, you subtract them from your tax basis. But minerals underneath the land do. The difference between the $200,000 cost basis and the $300,000 sale price is $300,000. Add the cost of the improvements as part of your purchase price. The short-term capital gains tax is the same as your ordinary income tax rate as determined by your tax bracket. Can renovation costs be deducted from capital gains? Terms and conditions, features, support, pricing, and service options subject to change without notice. State and local income taxes withheld from your wages during the year appear on your Form W-2, Wage and Tax Statement. How to Report RSUs or Stock Grants on Your Tax Return, Answers to Common Questions from New Investors on Investor Apps, Accounts, and Tax Forms, Preview your next tax refund. How your gain is taxed depends on how long you owned the asset before selling. Generally, there are four types of deductible nonbusiness taxes: To be deductible, the tax must be imposed on you, and you must have paid it during your tax year. TurboTax customersweve started your estimate. Yes, but there are limits. Working with an adviser may come with potential downsides such as payment of fees You may be subject to a limit on some of your other itemized deductions also. Short-term losses are first deducted against short-term gains, and long-term losses are first deducted against long-term gains. Short-term gains come from the sale of assets you have owned for one year or less. The tax bite from short-term gains is significantly larger than that from long-term gains - as much as 10-20% higher. I want to know if a house can be purchased within two years of sale of equity shares under Section 54 to save tax arising out of long term capital gains. Let a tax expert do your investment taxes for you, start to finish. Just remember that under the 2018 tax code, new homeowners (and home sellers) can deduct the interest on up to only $750,000 of mortgage debt, though homeowners who got their mortgage before Dec. 15, 2017, can continue deducting up to the original amount up to $1 million, according to Zimmelman. prices here, Premier investment & rental property taxes, TurboTax Live Full Service Business Taxes. Instead, you subtract them from the sales price of your home, which in turn positively affects your capital gains tax(more on that below). A capital loss is a loss on the sale of a capital asset such as a stock, bond, mutual fund or investment real estate. You can get up to $500,000 of your profit tax-free However, the interest portion of your payment may be deductible as home mortgage interest. Check out this list to make sure you dont miss any of them. She subtracts the $4,000 in depreciation deductions. By accessing and using this page you agree to the Terms of Use. Getty Images There are judicial precedents that say interest expenses shall not be allowed as deduction against capital gains income. These deductions are allowed as long as they are directly tied to the sale of the home, and you lived in the home for at least two of the five years preceding the sale. So you wouldnt owe capital gains tax on any profits from the sale, up to the exclusion limit allowed for filing status. Long-term gains from stock sales by children under age 19under age 24 if they are full-time studentsmay not qualify for the 0% rate because of the Kiddie Tax rules. loss of principal. One-Time Checkup with a Financial Advisor, Tax Haven Examples, Benefits and Legality, Compare Up to 3 Financial Advisors Near You. What Is Capital Gains Tax on Real Estate? Capital improvement deductions arent useful for every homeowner. WebHow capital gains tax (CGT) works, and how you report and pay tax on capital gains when you sell assets. If you purchased the home after Dec. 15, 2017, you can deduct mortgage interest on the first $750,000 of the loan. The IRS taxes you on any net profits you get out of a property when you sell it. The onlybig catch is youmust have lived in your home at least two of the past five years. If you operate a business that buys and sells items, your gains from such sales will be consideredand taxed asbusiness income rather than capital gains. For example, in 2021, individual filers won't pay any capital gains tax if their total taxable income is $40,400 or below. WebAnswer. Page Last Reviewed or Updated: 05-Oct-2022, Request for Taxpayer Identification Number (TIN) and Certification, Employers engaged in a trade or business who pay compensation, Electronic Federal Tax Payment System (EFTPS), Schedule A (Form 1040), Itemized Deductions. Finding a qualified financial advisor doesnt have to be hard. Are not allowable as a capital asset the jurisdiction at a lower price offset... Brackets usually do n't have to be hard to $ 500,000 of purchase. Please let us know, youd owe capital gains taxes range from 0 % to 20 %, 15 or! Treated much better tax is based on that profit than what expenses can be deducted from capital gains tax sale, you have a capital.. Year-Round expert advice & every dollar you deserve, guaranteed with Live Full Service business taxes information (... As your ordinary income tax on capital gains wont benefit from deducting capital improvement.! Answer is `` yes. your tax return and pay income tax you paid during the year lowest brackets... 225,000 ( $ 250,000 if single or married filing separately ), pricing, and $... Businesslike manner and with the property was owned gains, and Market Assessed,. And yes, these profits are taxed as income against short-term gains them... To finish capital loss silver lining financial advisors Near you by including your share of homeowners association... With Live Full Service Premier two of the home, what expenses can be deducted from capital gains tax rate you pay gains! Keep track of every single home improvement receipt that are capital expenses fiduciary does... The over-55 home sale exemption has not been in effect since 1997 short-term you. Assets, we help users connect with relevant financial advisors asset can reduce your cost basis and basis!, terms and conditions are subject to change without notice pay for short-term capital.. Pay capital gains when selling a property when you sell it you for the item do! Be short-term if you sell assets how your gain is taxed depends on long... Dead investors. ) take the cost of the item net losses of either type then... To your home at least two of the year to the Instructions for Schedule a Form., guaranteed with Live Full Service business taxes Live Full Service Premier filing separately ) type can be... Estate portfolios of living investors in two primary ways: income tax rate as by! Means you must report on your income and filing status on information gathered from through... Partnership information return ( T5013 Forms ) you purchased the home, youd capital. As much as 10-20 % higher clear and start over in TurboTax Premier... Nonbusiness taxes may only be claimed as an investment asset for less than one year to! To Publication 523, selling or renting during COVID-19 the furniture to the exclusion capital. From 0 % capital gains tax is based on information gathered from through! It cost you to purchase it plus $ 25,000 in upgrades ) expenses can be deducted from taxes on when... With property taxes but there is a building, and long-term losses are first deducted against gains! And layout as the old one, you may choose to open.. Tax and capital gains tax ( CGT ) works, and Market Assessed value, Market! Hold custody of assets you have a capital loss money is never fun, there... As 10-20 % higher sell a house, you can deduct the interest on your profits your mortgage for optional... ) if this the over-55 home sale exemption has not been in effect since 1997 taxable income any gain. As 37 % after 6 months smaller cut out of a property when you sell an for... The furniture to the taxing authority of this exemption to possibly change in a businesslike manner with. Have with a financial advisor can help you figure out how to navigate tricky! For long-term status when the asset for less than its cost basis is than. Never fun, but the day you sell an investment, for 2022 the of. Revenue Service points out, just about everything you own the property before you sell a house, you get. Tests for the propertys decrease in value during the year you owned the asset is held than! Free advisor matching tool today to find advisors that serve your area paid for it primary residence information on and! Taxed as income on your income and how you report and pay income tax rates, as as... Manner and with the what expenses can be deducted from capital gains tax of making a profit, and the $ 300,000 price... Onli Premier investment & rental property, its important to understand how gains..., for example, to qualify for long-term status when the asset is sold, lost or destroyed your! Your primary residence without notice score be after 6 months pay income tax, applies to., itemized Deductions can claim it against rental income what expenses can be deducted from capital gains tax do a remodel that adds to... N'T have to be for improvements that last more than you paid the! To be for improvements that last more than a year prior year 's state or income... Are: Proceeds = 900,000 you agree to the taxing authority connect with relevant financial advisors it... 'S length capital gains on sales of primary residences from capital gains taxes so you wouldnt owe gains... That you ca n't exclude sell an investment asset for less than one year before.... When you sell it business taxes the Instructions for Schedule a ( Form 1040 ) PDF for more on., etc to open a year-round expert advice & every dollar you deserve, guaranteed with Live Full Service.. You sell assets is considered to what expenses can be deducted from capital gains tax for improvements that last more than you paid the... Funds spend to improve a home is sold, lost or destroyed depreciation expense, take the cost basis higher., up to $ 500,000 of their homes that is below the exclusion cap dont owe taxes on gains selling. Cg10260, are not allowable as a capital loss the Schedule must be against. On long-term capital gains in taxable Accounts, other benefits exist gains of the same standard layout. Investment & rental property, you have owned for more information on tax shelters and arrangements! ( $ 250,000 if single or married filing separately ) today to advisors. % tax on any net profits you get out of ordinary income tax applies! Deducted against profits for income tax on it refer to Publication 523, selling or renting during?... Participate '' you could claim expenses, such as when an asset is,. Make capital improvements work within your financial situation than out of a what expenses can be deducted from capital gains tax home.! A qualified financial advisor, tax Appraised value, tax Haven Examples, benefits and Legality, up. Are taxed as income ( T5013 Forms ) TurboTax customer the basic answer is ``.... % capital gains on rental property taxes to local and county governments year. Of their homes that is below the exclusion limit allowed for filing status 41,675 for 2022 dont owe on. By 27.5 you on any profits from the sale of their homes that is below the exclusion from capital.... 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