How a Capital Gains Tax Change Could Affect Medical Practice Sales
With President Biden's inauguration today, many are wondering about potential tax changes that could take place in the near future. One much discussed item that has particular relevant to medical practice transactions is a change to the capital gains tax rate.
President Biden has advocated for raising the top capital gains rate to nearly 40%, according to the Wall Street Journal. Assuming these changes are passed and are not retroactive, they could go into effect for the 2022 tax year. (A retroactive change is possible and would affect 2021).
For that reason, we believe many physicians waiting for the right time will pursue a transaction in 2021. They would be wise to begin now. Medical practice transactions are complicated and take many months to complete - particularly with a marketing process and extended negotiations. We are available to talk about each situation and recommend a course of action.
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This post is for informational purposes only and does not constitute an offer, invitation, solicitation, or recommendation to buy, sell, subscribe for, or issue any securities. While the information provided herein is believed to be accurate and reliable, 127 Capital, LLC (“Physicians First”) makes no representations or warranties, expressed or implied, as to the accuracy or completeness of such information. All information contained herein is preliminary, limited and subject to completion, correction or amendment. It should not be construed as investment, legal, or tax advice and may not be reproduced or distributed to any person.