Sell Your Medical Practice

Capital Gains Tax On Medical Practice Sales

The Deferred Sales Trust can help you sell your medical practice and maximize your sales proceeds. After a long, successful medical career, you may be ready to trade in the days of private practice for a more relaxing and simplified life post-retirement. But how do you ensure you’re putting yourself and your family in the best possible position following the sale of your practice? Unfortunately, many medical professionals decide on the status quo when selling their practice. They choose to sell to a buyer and immediately pay capital gains tax on their profits. This can be 20-35% of the sale! The Deferred Sales Trust is a powerful tool that can help you defer capital gains tax.

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

The Freedom Bridge Capital team is with you every step of the way when selling your medical practice. We will buy your medical practice, and in return, you are given a promissory note from the trust that agrees to pay you monthly installments of your proceeds. The trust will then sell your practice to another buyer, and the proceeds are used to secure your promissory note.

By selling your practice to the trust, you are able to defer your capital gains taxes on the sale.

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

Freedom Bridge Capital can help doctors, plastic surgeons, dermatologists, and more sell their medical practices while deferring capital gains tax. Our Deferred Sales Trust specialists can assist with the sale of your:

• PLASTIC SURGERY PRACTICE
• DERMATOLOGY PRACTICE
• ORTHOPEDIC SURGERY PRACTICE
• RADIOLOGY PRACTICE
• CARDIOLOGY PRACTICE
• GASTROENTEROLOGY PRACTICE
• VASCULAR SURGERY PRACTICE
• VETERINARY PRACTICE

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

By transferring your medical practice to the trust, you are not directly selling your practice to the buyer and receiving the profits. Instead, the trust is selling your medical practice for you and you are receiving a promissory note in return. This is classified as an “installment sale” in IRC 453 of the Internal Revenue Code. You can legally defer your capital gains tax on the installment sale. The seller will need to report the income of the sale using IRS Form 6252.

WHICH ASSETS CAN THE TRUST USE TO SECURE MY PROMISSORY NOTE FOLLOWING THE SALE OF MY MEDICAL PRACTICE?

By selling your medical practice to the Deferred Sales Trust the trust can secure your note with a diversified portfolio of investments that includes:

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

CAN I PASS DOWN THE PROFITS FROM MY MEDICAL PRACTICE SALE TO MY FAMILY?

The Freedom Bridge Capital team can help you craft a wealth succession plan following the sale of your medical practice. We can help you create or modify a living will, name beneficiaries for your note, and prepare for your transfer of wealth to your heirs.