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I am 52 years old and employed, making 22,000 a year. I had 42,000 in a retirement fund from a prior employer. I decided to start up a small business selling go karts, parts and rebuilding their motors and use this money to buy a van and trailer and necessary equipment and parts. I have to travel every weekend to these races to get customers. Because I am not over 59 1/2 and took the money in a lump sum I would have to pay over 12,000 in taxes if it wasn't for the business. My question is since I am just starting the business and all of the money went on the purchase of the van and trailer (paid cash) and equipment (paid cash) and I have not realized any profit how do I decrease the amount of taxes ($12,000) that I owe. I know some about depreciation, amoritization, etc. Thank you for your help.
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