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 relevance 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.
To learn more about our healthcare investment banking services or to discuss your specific situation with no obligation please feel free to call. We are happy to share our knowledge and help you understand your options. All conversations are strictly confidential.
FOCUS Managing Director and Healthcare Team Leader