The Tax Loophole Smart Dentists Use
When Selling Their Practice

The Tax Loophole Smart Dentists Use When Selling Their Practice

May 20, 2025 9:00:00 AM / by Everything DSO

Picture5-4


Dear Reader,

You work hard. You run a tight ship. Your numbers are solid, your team is sharp, and you’ve built something that matters. And every April, you get hit with the same gut-punch:

“You owe how much in taxes?”

It’s infuriating. You’re penalized for success. Rewarded with a higher bill. Stuck on the treadmill of high income, high effort, and very little left over after Uncle Sam gets his share.

But here’s what the smartest dentists are doing — and it’s something your CPA may have never brought up:

They’re using a DSO exit to turn ordinary income into capital gains.

And the difference?
It’s not small.
It’s six figures… sometimes seven.

Same Numbers. Different Outcome. Better Future.

Let’s break it down:

Imagine you’re earning $700K/year in take-home pay. You pay federal tax, state tax, self-employment tax, and more. By the time it's all done, you’re keeping maybe 55–60% — if you're lucky.

Now imagine you sell your practice for $5M… and that money is taxed at long-term capital gains rates — typically 15–20%.

You just made more in one transaction than 5–7 years of grinding…and you paid half the tax.

Same revenue. Different strategy. Radically different result.

The Strategy Most Dentists Never Hear About

Most CPAs are focused on your books. Your quarterly payments. Your write-offs and deductions.

But most CPAs aren’t trained to build wealth through exits. That’s not their lane. So they don’t talk about:

  • Entity structuring before the sale
  • Asset vs. stock sales (and how one can crush your tax bill)
  • 10-year tax deferral options through QSBS (if you qualify)
  • Equity roll-forward strategies that reduce risk and increase post-tax upside

They’re trying to save you $20K. Meanwhile, you’re missing a $700K opportunity by not selling smart.

Your Practice Is a Tax Shelter — If You Know How to Use It

We’ve helped dentists sell for millions and keep millions — because the deal was structured right from day one.

You don’t have to:

  • Retire
  • Give up your identity
  • Stop practicing

You just need to shift the way you think:

From income-chaser…To equity-extractor. From working harder for money…To structuring smarter for wealth.

One Doctor Told Us This Changed His Life

Dr. R had always maxed out his retirement accounts. Worked six days a week. Put three kids through school. And still felt like he was just staying afloat. When we helped him sell a portion of his practice — with a tax-advantaged structure — here’s what he said:

“For the first time in my life, I felt like I wasn’t being punished for succeeding. I finally kept more than I gave away.”

That’s the power of smart tax planning through a DSO deal.
It’s not about selling your soul.
It’s about keeping what you’ve earned.

Want to See What You Could Actually Keep in a Sale?

Let’s run the numbers — with the tax lens in place.

We’ll show you:

  • Your estimated tax exposure under different deal structures
  • What buyers are offering and how it’s typically taxed
  • What your CPA might be missing
  • And how to exit with your wealth intact

Because it’s not just about what you make when you sell. It’s about what you keep.

To your unstoppable success,

Your Team at Everything DSO

Everything DSO

Written by Everything DSO

 Stan Kinder

Which of these 4 DSO Strategies is best for YOU and Your Dental Practice?

Discover how current Dental Market Disruptions can mean Massive Profits for you. Everything DSO is here to help level the playing field for you. As an Industry Insider, the advice you get from our involvement will assure you make the best decisions and achieve the most favorable outcome. 

Take our short 30-second assessment to get started with the best DSO Strategy for you and your Dental Practice …

Take the Assessment!

Subscribe to Email Updates

Recent Posts