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When you liquidate your IRA, you'll only owe taxes on the portion of the distribution that comes from deductible contributions and earnings.

For a traditional IRA, this generally means the entire distribution.

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While there are general terms and conditions required to liquidating a business, specifics differ depending on the type of liquidation.

The main purpose for liquidating is to have the company’s assets and properties One of the first questions frequently asked in how to liquidate a company is, “Where do I start?

For example, if you fall in the 15 percent tax bracket, a $7,000 taxable distribution costs you $1,050.

If you're in the 35 percent tax bracket, that same distribution costs you $2,450 in income taxes.

The IRS considers fund earnings as short-term gains, which require higher tax rates than long-term earnings.

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