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Big home sales, big tax savings

By selling their luxury homes before the end of 2012, these wealthy homeowners avoided two tax increases on Jan. 1 and a huge payout to the IRS.

Malibu, Calif.

gallery high end homes malibu ca
  • Sold for: $4.2 million
  • Estimated tax savings: $200,000

Beach property in California is typically hard to come by. Nevertheless, this home sat on the market for more than a year before it finally sold.

Luckily for the owners, the deal on this big, modern home closed before New Years.

Even after updates and improvements, the sellers still turned a tidy profit. They bought the house for just $840,000 back in 1993. And by selling before Jan.1, they were able to save roughly $200,000 in capital gains taxes and the Medicare surtax.

  @CNNMoney - Last updated January 16 2013 05:16 AM ET

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