Tax Advantages
TAX RAMIFICATIONS
Please be sure to contact your account for updates and changes in tax law and to plan your tax liability strategies.
| Allocation of Purchase Price for a Dental Practice | |||
|---|---|---|---|
| Item | Seller | Buyer | |
| 1 | Equipment, furniture and fixtures | Ordinary income (recapture over basis) | Depreciable for a term of 7 years |
| 2 | Leasehold Improvements | Ordinary income | Useful life depreciable 38 years |
| 3 | Leasehold Fixtures | Ordinary income | Depreciable over term of lease. Doesn't include options |
| 4 | Interest in lease | Capital gains | Depreciable terms length of lease |
| 5 | Supplies and consumables | Ordinary income | Depreciable expense term of sale |
| 6 | Covenant not to compete | Ordinary income | Depreciable over 15 years |
| 7 | Patient Records | Capital gains | Depreciable over 15 years |
| 8 | Goodwill | Capital gains | Depreciable over 15 years |
