Who determines what percentage of the sales price is allocated to exchangeable assets or non-exchangeable assets?
Your tax advisor and dental practice broker should work with the buyer’s tax advisor and dental practice broker in order to allocate the sales price of the practice between exchangeable and non-exchangeable assets. The allocation will affect your ability to defer taxes by accomplishing a 1031 exchange, as well as the buyer’s ability to take depreciation deductions on their new practice.
Related Questions
- What is my assessed value intended to reflect? Is it the sales price or some percentage of a sales price in my study group?
- What is the correct sequence, order of the assets, when allocating the sales price in a business acquisition?
- What is a reasonable percentage of a propertys purchase price that can be allocated to chattel property?
