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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 110541
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I sold a business what taxes do I owe

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I sold a business what taxes do I owe?
What you owe are the capital gains taxes, the difference between what you paid for the business, plus your capital investments into the business (which gives you your basis) and what you sold the business for (after taking the allowable business deductions) and if you took a loss on the business, then you are entitled to claim such a loss on your income taxes.

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Customer: replied 7 years ago.
I think I need to add another detail to the question just so I'm clear. My father was very ill in 2007 and he owned the business. He decided to give it to me and did so by a gift letter. 2 months later he passed away and I took over running the place. In 6/2008 I sold the business. Does that change your response?
It changes the answer a bit, since your basis would be the value of the business at the time it was given to you, meaning it was likely even higher than it is now. However, if gift taxes were never paid by your father at the time of the gift, you may end up having to end up settling this as well. What you need in this matter is going to be a tax attorney/accountant to make sure that you get the proper deductions for the sale to minimize your taxes.
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Customer: replied 7 years ago.



Thank you that was helpful.

Thank you and good luck.

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