By Brad MacLiver
Authorship and profile at Google
How can a capital asset affect a Florida pharmacy business owner wanting to sell their business, and what is it?
Authorship and profile at Google
How can a capital asset affect a Florida pharmacy business owner wanting to sell their business, and what is it?
Looking solely a Georgia pharmacy business and not the personal property of the pharmacy owner, if the pharmacy owner wanted to sell their pharmacy business, it then is a “capital asset.” Now the pharmacy owner would look at the disparity in the cost they paid for the pharmacy business (the basis), and the monetary figure the pharmacy business sells for, either for loss or gain, and this is deemed a “capital gain or loss” by the U.S. government, it has to be stated and can be taxed.
Capital gains may also be identified as Investment income due to its relation to real assets, such as property, intangible assets such as donations, and financial resources.
Finding financing for a potential pharmacy business buyer will be increasingly more difficult and the amount of cash available will be less with the current economic down turn, while selling a Georgia pharmacy business for a net profit will become increasingly more problematic. Now couple this with the possibility that the seller of the pharmacy business might need to reduce the asking price so buyers have the opportunity to get financing, and then, still pay an increased tax percentage.
How can an owner of a Georgia Pharmacy business combat these issues? There are some good tools and strategies out there, but first the pharmacy owner requires a specialist in the pharmacy business industry that is knowledgeable in these strategies and tools. Washburn & Associates are these specialists that are keenly aware of the practice of selling a Georgia pharmacy for the highest profit available, while paying the least in taxes.
One tool is the “Charitable Remainder Trust” or CRT; this used to assist with the capital gains tax burden.
Now, what is a Charitable Remainder Trust? Legally explained as “Split Interest Trust,” which are used because to the mix of charitable donations and personal financial positions; CRT’s may enhance the pharmacy business owner’s finances, and allow for charitable giving, while decreasing tax liabilities.
A CRT is created from charitable donations when a pharmacy owner donates from their own assets, such as real estate, cash, etc and is donated to this special type of Trust. The trust is then put in place for a specific time period or until the donor’s death; during this time the pharmacy owner may collect income and if desired, buy life insurance from the Trust’s assets, and without state tax liability to provide for their designated heirs after they (the pharmacy owner) are gone. CRT’s are for use by financial specialists in the pharmacy business industry, such as Washburn & Associates, to raise the pharmacy owner’s assets and charitable donations by understanding the U.S. government’s strict and nebulas tax laws revealed in Internal Revenue Code 644, which states when and how a CRT can be set up.
Georgia pharmacy business owners need to receive the greatest amount of cash for their pharmacy business. By utilizing Washburn & Associates as their pharmacy business industry specialists, Georgia pharmacy business owners can rest assured they would garner the best from their business investment.
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