With assets available to fund the doctor’s retirement at a premium, it’s imperative that doctors utilize every strategy possible to minimize taxes on their practice sale proceeds. From a seller’s standpoint, that means maximizing the portion of practice sale price allocated to assets that will generate capital gains (e.g. patient files and records, orthodontic contracts, goodwill, etc.), which is taxed at a maximum rate of only 15% for federal income tax purposes, and minimizing the allocation to assets taxed at ordinary rates (e.g. supplies and instruments, accounts receivable, dental and office furniture and equipment, etc.), taxed at a maximum rate of 35%.