As the “boomer generation” of lawyers, accountants, doctors and other professionals look to transition toward retirement, one of the biggest issues facing many of them is how to sell their professional practice and not be hammered with a ton of capital gains taxes.
Well the good news is that the same technique used for the sale of real estate property, the structured installment sale, can also be used when selling a professional practice.
Check out this video that gives you some key elements to consider, such as your choice of business entity and whether is qualifies as a capital asset, the choice of funding and guarantee options available, as well as how to spread out the tax hit and reinvest the proceeds over time to further secure your financial future.