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Tax Considerations for Pharmacy Sale


Tax Considerations for Pharmacy Sale


Just as a patient relies on you for advice about prescriptions you should rely on Washburn & Associates to help you with the sale of your pharmacy and all the planning associated with the sale. Washburn & Associates has extensive experience in pharmacy acquisitions and has the knowledge and expertise to properly structure transactions for tax considerations.


Specific tax strategies can be used to help offset the tax liabilities when selling a pharmacy. These strategies and the federal regulations that allow for reducing the tax liability for the pharmacy owner are not always known by the accountants and attorneys. 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. These strategies, developed from federal IRS codes, allow the asset to be converted to an income stream, provide a tax deduction, increase asset diversification, provide risk reduction, along with offering effective retirement and estate planning.


There are some capital gain tax strategies that must be implemented before the sale of the pharmacy begins. If you are considering selling your pharmacy now, or in the next few years, you need to consider the best course of action.


Estate planning when selling a pharmacy is also a consideration. Specific federal regulations allow an 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. If the pharmacy seller is nearing retirement age, or will be working as a pharmacist for another company, estate planning should also be considered.


Our expertise and specific strategies with regard to structuring a pharmacy transaction can maximize the business value, reduce the seller’s tax liabilities, and put more money in the seller’s pocket.


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This post is related to:

Buying/Selling of a Pharmacy & Franchising