When it comes to physician and dentist practice transactions, the classification of goodwill can have serious tax implications for the parties involved. Anticipated post-acquisition tax outcomes may dictate whether a transaction even occurs. Structuring a transaction successfully requires consideration of relevant law and the unique facts and circumstances surrounding the transaction, proper documentation, proper valuation support, and an understanding of the financial impact to all parties.
PYA Principal Jim Lloyd addressed this topic at the 2013 AICPA Healthcare Industry Conference in New Orleans, where he co-presented a session on “Valuation Strategies for More Tax-Effective Physician/Dentist Practice Transactions.” The presentation emphasized the pros and cons of various deal structures and the potential tax savings available from allocating a portion of the purchase price to the physician’s professional goodwill and/or other intangible assets. View the presentation below.
For more information or to request a speaker on this topic at your organization or event, contact the expert listed below at PYA, (800) 270-9629.
WE ARE REQUIRED BY IRS CIRCULAR 230 TO INFORM YOU THAT THE FOLLOWING DISCUSSION WAS NOT INTENDED OR WRITTEN TO BE USED, AND IT CANNOT BE USED, NOR RELIED UPON, BY ANY TAXPAYER FOR THE PURPOSE OF AVOIDING ANY PENALTIES THAT MAY BE IMPOSED UNDER FEDERAL TAX LAW. THE ADVICE WAS WRITTEN TO SUPPORT THE PROMOTION OR MARKETING OF THE TRANSACTIONS OR MATTERS ADDRESSED IN THE DISCUSSION. EACH TAXPAYER SHOULD SEEK ADVICE BASED ON ITS PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR.