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
WHAT IF I NEED SOME OF THE SALES PROFITS?
Depending on your financial situation, you may decide to take a portion of your profits after your sell your dental practice. In this case, you will have to pay capital gains tax on the portion of principal you receive. If you take 10% of your profits, you need to pay capital gains tax on that 10% only. If the trust invests the other 90% of your profits, you will defer the capital gains tax on that 90%.
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.