Therefore it is important that the contract allocate parts of the total payment among the items being sold. The tax treatment is the same in either case, but I am puzzled about what you are selling. A sale of a business is considered for tax purposes to be a sale of the various assets involved. I've owned my dental practice for 20 years and am ready to sell it in 2018. The sale and rental of orthodontic appliances are a taxable supply but zero-rated, meaning the practitioner does not collect GST/HST (the tax rate is 0%). 197 intangible asset (see Regs. • Practice consistently collection over $1.8M • Established practice with 6 equipped operatories • Doctor would like to work for the buyer post-sale • Paperless office, with Open Dental and digital imaging • Building available for sale It has become way more difficult to cross the finish line in the sale of a dental practice, and the shift towards a buyer’s market began in 2015. The buyer of a practice would like to write off as much of the purchase price as possible on his tax return. The sale of a dental practice can quickly bump a seller into a steep tax bracket. Our commission rates are negotiable. List of Dentists providing NHS Treatment on the Isle of Man Douglas. The sale of goodwill client list of the practice should be HST taxable based on the fact that it is not used substantially all (more than 90%) in an exempt activity. It allows you to defer the taxes associated with recapture over basis you would otherwise incur with the sale of … In the sale of a medical or dental practice, much time is spent on negotiating the total purchase price, and rightly so. Once we receive this information, it will take approximately 10-days to complete the core components of the practice valuation. Under the tax code, each one of these price allocations has their own tax treatment. PITFALLS TO AVOID WHEN SELLING A DENTAL PRACTICE By Ron Lebow, Esq. Placing all questions as to valuation of a noncompete covenant aside, where the purchaser enters into a compensatory noncompete covenant in connection with the acquisition of a trade or business, the consideration paid creates an amortizable Sec. We are shutting down my partnership, discontinuing our DBA and giving up our business number.My understanding is that this would be the sale of an intangible asset ie. Offer period March 1 - 25, 2018 at participating offices only. PMID: 11575251 [PubMed - indexed for MEDLINE] MeSH Terms. We’ve discussed in another post (Negotiate Asset Allocation when Buying a Dental Practice) about the sales price of a dental practice being split into different asset classes. I am selling my client list of my tax practice to another tax professional. I owe $150,000 on the buidling and am planning to pay it of with the proceeds of the dental sale. 19. We have had an office in home so the only thing that is being sold is the client list. If no tax was paid since an election was made, the purchaser will be required to remit HST on its next GST return to … and Andrew Stein, Esq.. If you are selling a dental practice now and are planning to buy another practice within six months, a 1031 or “Like Kind” Exchange may be a tax deferral strategy to consider. For these sales of dental prostheses to Dentist B, Dentist A is acting as a dental laboratory and, therefore, is liable for both manufacturing B&O tax and retailing B&O tax with respect to the manufacture and sale of dental prostheses to Dentist B. Dentist A may also claim a … Consequently, the buyer would like to pay the majority of his purchase price in the form of consulting fees or salaries under an employment contract. However, with the new … As a tax practitioner for more than 40 years and a business valuation professional for 25 years, sales and valuations of tax practices have crossed my desk numerous times, in addition to making two acquisitions myself. 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