Pharmacy Transactions and Capital Gains Tax for Florida

By Brad MacLiver
Authorship and profile at Google


What is a capital asset and how would it affect you, a Florida pharmacy business owner in selling your pharmacy?

In this case, just looking at a Florida pharmacy business and not the personal possessions of the pharmacy owner, if the Florida pharmacy owner decided to sell their business, it now becomes the “capital asset.” Now the pharmacy owner would look at the variance in the price they paid for the pharmacy business (the basis), and the amount the pharmacy business sells for, whether for profit or loss, and this is considered a “capital gain or loss” by the federal government and must be reported and can be taxed.

Investment income is another way capital gains may be referred to due to its relation to real assets, such as financial resources, property, and intangible assets, such as goodwill.

With the current economic down turn, the ability to locate financing for a potential Florida pharmacy business buyer is more difficult and will be in lesser amounts if attained; and selling the pharmacy business for solid profit is extremely difficult. Couple this with the probability the seller of the Florida pharmacy business may have to reduce the asking price to allow buyers the ability to attain financing, and even more importantly, still pay a higher percentage of taxes.

How can an owner of a Florida Pharmacy business combat these issues? Believe it or not, there are some good strategies out there to do just that, but first the pharmacy owner needs a specialist in the pharmacy business industry that knows these strategies and tools. Washburn & Associates are these specialists that know the in and out of selling a Florida pharmacy for the greatest profit available, while paying the least in taxes.

One tool, but not the only one, available is the “Charitable Remainder Trust” or CRT; this used to help with the capital gains tax burden.

Now, what is a CRT? Legally described as “Split Interest Trust,” which are used due to the mix of charitable giving and personal financial positions; CRT’s may lesson the tax liabilities, enhance the pharmacy business owners finances while allowing for charitable donations.

Charitable donations create a CRT when a pharmacy owner donates from their own assets, such as money, real estate, and so forth, and are donated to this special type of Trust. This trust is put in place for a specific time period or until the donor’s death; and during this period the pharmacy owner may receive income and if desired, purchase life insurance to provide for their heirs after they are gone from this Trust’s assets, and without state tax liability. Remember, CRT’s are there for use by financial specialist in the pharmacy business industry, such as Washburn & Associates, to increase the pharmacy owner’s assets and charitable donations by understanding the federal government’s strict and complex tax laws covered in the Internal Revenue Code 644, that say when and how a CRT can be set up.

The bottom line is, the Florida pharmacy business owner, considering selling their pharmacy, wants to receive the best money for their pharmacy business. And by consulting with the pharmacy business industry specialists at Washburn & Associates the pharmacy business owner can be assured they will glean the best from their business investment.

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