CORNERSTONE DENTAL TRANSITIONS - 60 YEARS COMBINED EXPERIENCE
CORNERSTONE DENTAL TRANSITIONS - 60 YEARS COMBINED EXPERIENCE
Are you looking to Sell or buy a practice? Do you want to know what your retirement options are? Are you interested in a practice merger? CORNERSTONE can help you attain your goals and dreams! Call (480-634-4803) or email us today.
Cornerston Dental Transitions

SECURE THE VALUE OF YOUR PRACTICE TODAY

SECURE THE VALUE OF YOUR PRACTICE TODAY

11/17/2021 9:39:04 AM   |   Comments: 0   |   Views: 55
There are significant changes on the horizon that will impact our current tax structure. President Biden would like to raise the long-term capital gains tax to 39.6%, which almost doubles the current long-term capital gains tax of 20%. In a typical practice sale, 80% of the sale price is allocated to goodwill. Goodwill is taxed as long-term capital gains. The remaining 20% of the sale price, is allocated to furniture, fixtures, supplies, equipment, and other tangible assets. This portion of the sale price is taxed as ordinary income. Ordinary income taxes are progressive, and change based on your income for that tax year. For most dentists, in the year they sell their practice, they will fall into the top tax bracket, which is currently 37%.

If you are planning to use the proceeds of the sale of your practice to fund your retirement, this change in tax rate could greatly affect your retirement projections and potentially alter how much longer you have to work. The proposed tax changes are huge, not just a few percentage points. These changes could double the amount of tax you will have to pay, and you need to be prepared for that. If you are on the fence about selling, you might want to consider doing something sooner rather than later. You may not be able to afford to take the gamble of waiting.

If you are considering retirement, now is the time to talk so give AFTCO Southwest a call  at 480-634-4803 and get your Free Market Value Analysis. We will keep everything confidential.
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