Basic Understanding of Key Dental Practice Purchase Agreement Elements Understanding key elements in a dental practice purchase agreement are necessary to ensure a successful dental practice transition. Making the decision to buy or sell a dental practice is a major life event.  Once that decision has been made, navigating legal documents can certainly feel daunting. […]

What is the Employee Retention Credit (ERC)? The Employee Retention Credit (ERC), initially created by the CARES Act in March of 2020, is a refundable payroll tax credit for wages paid and health coverage provided by an eligible employer. This credit is available for qualified wages paid during the period March 13, 2020, through September […]

Hello Again, Our last article was dedicated to the basics of tax considerations in the practice transition process. As a quick refresher, the total sale price of a dental practice is typically allocated in some part to goodwill, equipment, and supplies. Each of which carries with it its own tax consequences for both the buyer […]

Consider the Tax Consequences When Buying and Selling a Dental Practice Calculating dental practice taxes can be one of the easier things to deal with during dental practice transitions. This is said because dollar amounts can be planned and calculated. As a buyer, you are likely going into the decision of purchasing a practice while […]

The CURRENT LOW CAPITAL GAINS and ordinary income tax rates that we have enjoyed for the past few years were scheduled to “sunset” on Dec. 31, 2010. Fortunately, that deadline was extended until Dec. 31, 2012. How likely is it that Congress will extend it yet another time? What if they don’t? If they do […]

For most dental practices, goodwill constitutes the largest component of the practice’s value. A mistake in handling goodwill could cost you thousands or even tens of thousands of dollars in unnecessary taxes when you sell your practice. Giving Uncle Sam your hard-earned money in the form of unnecessary taxes is a costly mistake at any […]

We all know that DEATH AND TAXES are the only two certainties in life. We also know that when you sell a dental practice, chances are you are going to have to pay income taxes on the sale. What may come as a surprise is that the amount of taxes due can vary widely depending […]

For those of you who practice as C-corporations, the sale of your practice results in a double tax; 35% at the corporate level and 15% at the individual level. Since 1998, advisors have relied on several favorable tax court rulings to minimize this double tax by taking the position that your goodwill is personal to […]

A dental practice transition requires expertise in many different areas of business and the law. I will narrow my advice as it applies to the U.S. federal income tax laws as they may apply in dental practice transitions. Proper tax planning and preparations in the sale of your dental practice can afford the seller of […]

In order to maintain the best possible relationship between buyer and seller during a practice sale, it’s important to have an intermediary or buffer such as a broker, attorney, or accountant to assist in the negotiation of the sale of the practice assets. Selling a dental practice usually requires some negotiation, and having this  intermediary […]

Not doing due diligence is not a good excuse for finding out poor decisions have been made. Too often, doctors interested in buying, selling, or transitioning a dental practice don’t look at all of the information they should to make correct decisions. My studies have shown that most doctors know what information they should obtain. […]

Our organization has found that more dentists than ever are selling their practices and moving on to an active retirement or a new vocation. The retirees who postponed their retirement due to the stock market decline post 9/11, the baby boomers who are beginning to retire, and the dentists who are moving to new areas have […]

Before buying or selling a dental practice, great care and planning should be taken to consider the TAX CONSEQUENCES regarding the allocation of the sale price to the various assets involved in the transaction. Typically, the group of assets that would be sold between the selling party and buying party would include dental supplies, furniture, […]

With a book and a little bit of free time, it is possible for a dentist to perform his or her own electrical work. The problem with this approach to a dental practice sale is that disputes and liabilities resulting from the sale may be more significant than a blown electrical fuse or a little […]