Many CPA’s inform their clients that selling a pharmacy will result in high tax burdens. Most CPA’s are great at year to year tax accounting, but few CPA’s handle the buying and selling of pharmacies. Due to that, they do not research specific tax laws that would benefit their clients during a pharmacy transaction.
There are special tax regulations that affect a good portion of a pharmacy transaction. These regulations are there for the benefit of the pharmacy seller, but most pharmacy owners and CPA’s don’t know about them.
There are numerous tax laws. One law that few pharmacy owners take advantage of is for capital gains tax. When a pharmacy, or other large asset, has appreciated in value over the years and is now being considered for a possible sale, there are specific strategies that can counter the exposure to capital gains tax when the asset is sold. These strategies, developed from federal IRS codes, allow the asset to be converted to an income stream, provide a tax deduction, increase asset diversification, and provide risk reduction, along with offering effective retirement and estate planning. There will be more discussion on estate planning in upcoming blog posts at www.articles-sellingpharmacies.blogspot.com.
When pharmacy owners are considering selling a pharmacy, it is to their benefit to work with pharmacy specialists like http://pharmacyvaluations.com/. Pharmacy industry experts handle pharmacy transactions on a daily basis and know how to structure a deal using these special tax codes. When implemented properly these tax codes can assist in maximizing the overall amount of money a seller walks away with.
Want to learn more about these special tax codes? We encourage pharmacy owners to provide questions or feedback to the articles and comments posted at www.articles-sellingpharmacies.blogspot.com.
Brad MacLiver
www.PharmacyValuations.com
