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
WHAT IF I NEED SOME OF THE SALES PROFITS?
The Deferred Sales Trust is a flexible strategy. If you need a portion of the proceeds (say 15%) to cover the cost of living once you retire, you can take constructive receipt of that portion and have the trust invest the rest to secure your promissory note. You would pay capital gains tax on the portion you took out (the 15%), but you would defer your capital gains tax on the other 85% that the trust is investing.
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.