Hidden tax costs of buying stock of a professional practice.
Almost everyone realizes that the sale of an asset will generate tax consequences. But did you know that the purchase of a professional practice can result in higher taxes if the transaction is structured and valued incorrectly? This article examines the tax implications of acquiring a practice by comparing the purchase of assets versus the purchase of stock. Not all practices are corporations but for those that are, buyers will pay the purchase price with after-tax dollars. This type of sale results in a higher total cost to the buyer purchasing stock rather than the assets of a corporation.
Weber
Richard M
RM
Thornton Byron LLP, 3101 W. Main, Suite 200, Boise, ID 83702, USA. rweber@thorntonbyron.com
D006123:Group Practice; D007449:Investments / Q000191:economics / Q000331:legislation & jurisprudence*; D013660:Taxes / Q000331:legislation & jurisprudence*; D014481:United States