[chutchi]

I am selling a building and land for $ 700,000.00 The amount that has been depriciated is $496,000.oo of that amount. How can I avoid the capital gains or at least reduce them. Ohio business

[ebaines]

Not sure why you posted this in the Retirement Forum. But in general, your adjusted cost basis in the property is your original cost plus capital improvements less depreciation. You will pay capital gains tax on the difference between your selling prices and your adjusted cost basis. Keep in mind that you were able to reduce your taxes over the past years by taking the depreciation, but at some point the chickens have to come home to roost, so to speak.

How to reduce the tax? Lower your selling price (which is probably not a wise idea) or do a like-kind exchange for another property.