Sell Your Dental Practice

Capital Gains Tax On Dental Practice Sales

Selling your dental practice and putting yourself in the best financial position for retirement is no easy task. Many dentists and oral surgeons want to finally sell their practice and settle down, but they are hesitant to face the daunting process of selling or transferring. You need a team of financial professionals by your side to ensure you are generating the best value for your practice. Freedom Bridge Capital helps dentists and surgeons sell their dental practices while also deferring the heavy taxes associated with the sale. Traditionally, you can expect to pay 20-35% of your sale proceeds in capital gains taxes. That’s one-fifth of your profit. By selling your dental practice to the Deferred Sales Trust, you can defer paying capital gains tax.

HOW DO I SELL MY DENTAL PRACTICE TO THE DEFERRED SALES TRUST?

You, as the seller, sell your dental practice to the trust. The trust then sells your dental practice to the buyer. In exchange, you receive a promissory note from the trust. This note pays you the proceeds of your sale in monthly installments. This is different than a traditional practice sale because you are not receiving your profits upfront. As a result, you can defer your capital gains tax on your profits.

WHICH TYPES OF DENTAL PRACTICES CAN BE SOLD TO THE DEFERRED SALES TRUST?

Oral surgeons, orthodontists, prosthodontists, and more can sell their dental practices to the Deferred Sales Trust.
Let us help you defer capital gains tax on the sale of your dental or oral surgery practice.

• ORAL SURGERY PRACTICE
• ORTHODONTIST PRACTICE
• PROSTHODONTIST PRACTICE
• PERIODONTIST PRACTICE
• ENDODONTIST PRACTICE
• GENERAL DENTISTRY PRACTICE

HOW DOES THE DST DEFER CAPITAL GAINS TAX ON THE SALE OF MY PRACTICE?

The Deferred Sales Trust is governed by IRC 453 of the Internal Revenue Code. . This section of the tax code has been around for over ninety years. The sale of your dental practice to the Deferred Sales Trust is considered an “installment sale,” as per IRC 453. During an installment sale, the seller can legally defer their capital gains taxes on the sale since they are not receiving their profits upfront, but instead are receiving a promissory note that guarantees structured monthly payments. Once you sell your dental practice to the trust, you will report the income from your sale to the IRS by filling out IRS Form 6252.

WHICH ASSETS CAN THE TRUST INVEST IN TO SECURE MY NOTE FOLLOWING THE SALE OF MY DENTAL PRACTICE?

You can diversify the investments securing your promissory note. These can include:

• STOCKS
• BONDS
• ANNUITIES
• CDS
• MUTUAL FUNDS
• INDEX FUNDS
• ETFS
• REITS
• PROPERTY
• COLLECTIBLES

CAN I PASS DOWN MY PROMISSORY NOTE TO MY FAMILY?

Freedom Bridge Capital does more than help you sell your dental practice. Our Deferred Sales Trust specialists examine every aspect of your financial life to help you create a retirement plan, as well as a wealth succession strategy for your family. Let our estate planning team help you finalize your living well, name your beneficiaries for your note, and craft a blueprint that sets your family up for continued success.