Calculations can be made using the http://money.cnn.com/calculator/pf/home-rate-of-return/ calculator.
For example:
Home purchased in 1975 for $150,000.
Home sold in 2010 for $1,000,0000.
Federal tax (seller's marginal tax rate 25%) = 15%
State (CT) tax rate = 14%
Net proceeds from sale of home: $1,000,000 - $290,000 = $710,000
Annual return = 4.4%; Total return over 35 years = 367%
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