Although goodwill is an intangible asset, it carries the most weight when buying a practice. Our dental practice brokers have helped dentists in all 50 states find the right buyer for their dental practice and complete successful, stress-free transactions. Written by Tim Horton Updated over a week ago You probably wouldn’t think of making an investment recommendation to your clients without first considering the tax consequences. This method can be misleading because it’s based on collections and does not take profits into account. 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. “What are the tax consequences when I sell my dental practice?” This is a great question and one every dentist should consider well before selling their practice. Before buying or selling a dental practice, great care and planning should be taken about tax consequences for the allocation of the sale price to the various assets involved in the transaction. If you are considering buying or selling a Dental Practice then we invite you to contact Greg Bullock, our dental law specialist on 01283 526220 or at greg.bullock@elselaw.co.uk. When you buy a business, you generally pay a set amount for the entire business. It’s important to remember that fair market value to collections, while the most common valuation method, is not the only method to value a practice. For the purposes of the calculations, we have assumed the following: the sale will occur in Ontario, the percentage of revenue is the industry average (60% taxable/40% exempt); and both the seller and purchaser are registered for the HST. Small Tax Practice, either book of accounts or practice location. ... Property planning and business structures can reduce the cost of operating a dental practice by minimizing GST/HST cost. Staff can stay and current owner can provide transitional suppport for continued customer satisfaction. PITFALLS TO AVOID WHEN SELLING A DENTAL PRACTICE By Ron Lebow, Esq. A: As a result of the reduction of corporate tax income tax rates, I would still advise to not place the dental practice into a C corporation. When you are considering becoming a business owner, you have the option of buying an existing business or starting a new one. There are many misconceptions about dental practice transitions. For example, if your practice was set up as a regular C Corporation (C Corporation profits are taxed separately from the owner), all income from the sale is taxed at the corporate level. My more than 1,300 practice appraisals and the transition of more than 350 practices provided data for this article. 2-4 years). A transaction involving a medical practice is even further complicated by confusing and often impractical health care laws. Myth:Patient loss will be 20 to 30 percent. The letter of intent is the legally non-binding document that contains all the elements of the practice transition that you have negotiated with the seller. We have had an office in home so the only thing that is being sold is the client list. I would not pay you anything at all for a list of your clients if you were going to continue to do your utmost to retain them as clients. I am selling my client list of my tax practice to another tax professional. On average, a dental practice … Transferring a practice is often the largest business deal a financial advisor will oversee. OF A DENTAL PRACTICE Practice goodwill is the most important asset of any dental office. Selling my client list '', but do you in fact mean clients. 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