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The Problem: I sold a small business in April of this year for $90,000. My accountant said that I would have to pay capital gains on the proceeds less some small expenses, eg, cost of sale. The original purchase price of $43,000 of the business has long been depreciated. I've owned and run the business for 8 years as a sole owner. I am assuming I will have to pay about $16,200 in capital gains (18%). My accountant said that I could prepay some year 2003 bills this year to minimize the capital gains for this year. Some of the prepays were: property taxes and mortgage interest on 2 rentals. In July I used most of the proceeds to purchace a rental. I'm assuming the expenses of purchasing and repairs of the new rental can be deducted against the capital gains of the sale of the business. Is there anything else that I can do to minimize the capital gains due for this year? How much will I pay on the recapture of the depreciation? Thanks in advance for all of your help.
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