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PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4674
Experience:  35 years tax experience, including four years at a Big 4 firm.
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I have a business that's worth 7 million and spent about

Customer Question

I have a business that's worth 7 million and spent about 1 million to buy many many years ago . I owe about(###) ###-####on loans on the business , if I sold and had to pay capital gains tax in NYS woukd you be able to tell me approximately what tax would be?
Submitted: 1 year ago.
Category: Tax
Expert:  PDtax replied 1 year ago.

Hi I'm PDtax. I'll assist.

You would have capital gains to recognize of $6,000,000.

Your combined feed and NYS capital gains tax would be approximately

Expert:  PDtax replied 1 year ago.

29%, or $1,740,000. That can be reduced by prepayment of the state rate.

Thanks for asking at just answer. Positive feedback is appreciated. I'm PDtax.

Customer: replied 1 year ago.
Didn't get your amount
Customer: replied 1 year ago.
What does it mean prepayment of the state tax rate?
Expert:  PDtax replied 1 year ago.

If you prepaid the state tax, it would be deductible against the Fed. You would save 20% of the NY tax, reducing the risk tax by $106,000.