Taxes When Selling a Dental PracticeSubmitted by Mission Financial Planning on May 6th, 2016
You may want to delay the closing of the sale of your dental practice into the first year of your retirement to move the taxation of practice proceeds into a lower-income year.
Even though the bulk of the proceeds may be taxed at capital gains rates, those rates are tied to total income for the year. Layering a practice sale on top of a full year's earnings could push some of the proceeds into a higher capital gains rate.
This is for informational and educational purposes only and does not constitute legal, tax, or investment advice. Always consult with us or another qualified financial professional, accountant or lawyer for legal, tax, and investment advice.