All practices of physicians have a hidden asset that is largely undiscovered. Just because doctors never create the opportunity to present that claim. The other reason is that the advisers to the doctors never have the chance to tell the doctor about the assets, because they are looking at historical business issues, and will not create more value for current medical practice.
This hidden asset introduce real value that can be financed by the practice. The good thing about the funding of this asset is that it will give the doctor a dual income tax! One is for the good discovered, as amortized over 15 years, and the other is for the interest on the loan.
This is best illustrated with an example:
The hidden asset is properly valued at U.S. $ 2 million. A bank is proposed after the asset value is stated in a transaction of a good building. The bank pays the doctors $ 2 million practice. The interest payable per year is $ 150,000 and an interest rate of 7.5%. But this is reduced to 2.5% effective for the double deduction. The interest deduction will give the doctor a tax savings of about $ 50,000 for the year. And then the tax cancellation of hidden assets will give the doctor another approach $ 50,000 tax profit for the year. This reduces the cost of interest on the loan for only $ 50,000 for the year, or an effective interest rate of 2.5% for the loan. That is VERY cheap financing.
If the $ 2 million is now applied to a sound investment or to pay the debt side, the doctor may net about an extra $ 200,000 in savings and additional revenue each year. That’s equivalent to the doctor working harder to earn an extra revenue of $ 800,000 will pay taxes and to leave a net amount of $ 200,000. But in this case the doctor does not have to work harder. The hidden asset makes to the doctor.
The hidden asset?
The doctors of good will!
Should be valued, they become part of a restructuring of the way, then the benefits can start, as explained above.
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