A Specialty Practice Relocation, Real Estate and Long-Term Succession

A specialty dentist was relocating the practice and acquiring the real estate for the new location, while planning a long-term transition of the practice to the dentist's son.

The engagement combined the economics of a move, the acquisition of practice real estate and the family dimension of succession into one coordinated financial plan.

A practice relocation is a financial event: the new facility must be modeled, the real estate acquired and structured, and the tax consequences of both managed. The transition to the next generation added a second timeline running in parallel.

Each decision, real estate, tax, retirement and succession, interacted with the others, so they could not be handled one at a time.

Pagac performed financial modeling on the relocation so the practice could evaluate the move against its own economics.

Tax strategy was built around the acquisition, including a cost segregation analysis on the building and an evaluation of Roth conversion opportunities and the dentist's Qualified Business Income deduction position, each applied under applicable law to the dentist's specific facts.

The retirement plan was restructured to sit properly within the coordinated picture, and the long-term succession to the dentist's son was planned across the relocation and real estate timeline.

The result was a single architecture spanning the practice move, the building, the dentist's retirement vehicles and the next generation's path into ownership.

The engagement coordinated relocation, real estate, tax strategy and retirement architecture around one goal: a practice that would pass to the dentist's son on a planned timeline.

As with all client engagements, specific financial results are not disclosed; the structure was designed to support the dentist's choices under the tax law and circumstances that applied.