subject: Using Tax Strategies When Selling a Nevada Pharmacy or Independently Owned Drug Store [print this page] Using Tax Strategies When Selling a Nevada Pharmacy or Independently Owned Drug Store
The Nevada pharmacy being sold by the pharmacy owner is considered a capital asset. The difference between the amount the asset is sold for and the amount spent to either purchase or start the asset is a capital gain or capital loss. All capital gains and losses must be reported in the United States and appropriate taxes must be paid.
There are specific tax strategies available to help offset some tax liabilities when selling a pharmacy or drug store in the state of Nevada, and unless you use a professional who has handled a large number of pharmacy acquisitions, you will most likely be unaware of the federal regulations which allow for the reduction of tax liability for the pharmacy owner.
Many Business Brokers, CPA's, attorneys, and other professional advisors inform their clients that selling a pharmacy in Nevada will result in tax consequences. However, most of these professionals do not handle the buying and selling of pharmacies on a daily basis and may not realize the different aspects of structuring a pharmacy transaction allowing the reduction of the tax burden to the pharmacy owner.
There are some capital gain tax strategies that must be implemented before any obligation to sell the pharmacy. When a drug store owner is considering selling their pharmacy either now, or in the next few years, it is urgent the best course of action be considered now instead of later.
When selling a pharmacy in Nevada, estate planning should also be a consideration. There are specific federal regulations which allow for assets to be converted into income streams, providing a tax deduction, risk reduction, and an increase in asset diversification, along with being effective retirement and estate planning. If the pharmacy seller is near retirement age or will soon be working for another company as a pharmacist instead of an owner, estate planning should be considered.
As reimbursements are cut, more regulations are applied, and pharmacy profits continue to slip, more independent pharmacy owners along with small and regional pharmacy chains will be considering selling their pharmacies and drug stores. Tax considerations should be a paramount part of the decision process.
Pharmacy owners should consult with a pharmacy industry expert for advice on structuring the sale of their pharmacy. Someone with extensive experience in pharmacy and drug store acquisitions will have the knowledge and expertise to structure the transaction for tax considerations. Like all tax planning issues, waiting until the end of the year is not always the best strategy. Following this advice can place larger sums of money in the bank of pharmacy owners when a pharmacy is sold.
