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Thanks for your question.
As this is not your primary residence, you will owe capital gains tax on the sale if there is a gain. Remember, you can deduct the cost of selling the house and any improvements before coming up with your final gain. In Michigan, you will get a credit for taxes paid to California so you will not be double taxed on this sale.
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Yes, there are no breaks for state capital taxes -- although remember you will deduct your state tax for federal tax purposes