Changing practices/relocation

[feel69]

Hi all,

I'm an anesthesia resident and know we have quite a bit of flexibility in picking up extra shifts, locums, moving, etc.

Just curious about how that works in ophtho. For example in pp, if you are working towards partnership or are a partner, and you decide to move. What happens to your "stake" and do you basically have to start over as a lowly associate at a new city? It seems most ophthos pick a location, stay there to build their practice and cruise into retirement.

I assume much of this is different as an academic.

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[bergmistro]

I assume the same as every field's PP. If you're an associate, you just move on and start over. If partner, you may be able to have other partner's buy you out.

 

[Slide]

Hi all,

I'm an anesthesia resident and know we have quite a bit of flexibility in picking up extra shifts, locums, moving, etc.

Just curious about how that works in ophtho. For example in pp, if you are working towards partnership or are a partner, and you decide to move. What happens to your "stake" and do you basically have to start over as a lowly associate at a new city? It seems most ophthos pick a location, stay there to build their practice and cruise into retirement.

I assume much of this is different as an academic.

I can comment on the academic side.

If you're in a tenure track, you can typically transfer your title over. If you're on the clinical track, it varies on the institution but unless your resume is impressive you're busted back down to associate professor. In terms of salary/revenue it doesn't mean that much though.

 

[RetinaDude]

In private practice, if you leave one practice, and move somewhere else to join another, you are basically starting from scratch again. You have to build up a patient base, and you have an associate’s salary instead of a full partner salary.

As far as the practice (partnership) that you leave, the other partners buy your stake of the assets back from you. So, you should get a nice chunk of change for your “partner share” of the practice’s assets (equipment), your adjusted A/R, and/or any real estate owned.

 

[eyeeye_captain]

The nice part of that buyout chunk of change is that it’s taxed at capital gains rates, so you won’t get hit worse than 20%.

The ways to get straight back to partnership are to start a new practice, buy a practice out, or have someone bring you on as an immediate partner (rare but I’ve seen it).

It’s possible to have a pretty full schedule from day one, but a good bit has to go your way. You have to have someone leaving, cutting back, or retiring giving you established patients, and you have to have your licensing and be on insurance panels. The last part can take up to a year, so if you want to be up and running immediately, you pretty much have to stay in-state when you move.

 

[Gonio5]

The nice part of that buyout chunk of change is that it’s taxed at capital gains rates, so you won’t get hit worse than 20%.

Not 20% but as much as 57% tax.

Under Biden Tax Plan, Capital Gains Tax Will Exceed 50% In 11 States

If the Biden plan passes, there are 11 states where Americans subject to the new rules will face combined capital gain taxes of more than 50%.

www.forbes.com

Under Biden Tax Plan, Capital Gains Tax Will Exceed 50% In 11 States
Robert W. Wood
Senior Contributor
I focus on taxes and litigation.
Follow

2
May 6, 2024,10:16am EDT
are 11 states where Americans will face at least 50% capital gain tax under this plan. If the Biden plan passes, for the taxpayers caught by the new rule, here are the combined state and federal rates taxpayers might pay on their capital gains:


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Them rich need to pay their fair share....that is why Biden is the best president that America has ever had.
If you have capital gains, the government wants more than 50%
If you have losses, except for a small amount, those losses are yours, not the government's.

 

[mjohnsonets]

Not 20% but as much as 57% tax.

Under Biden Tax Plan, Capital Gains Tax Will Exceed 50% In 11 States

If the Biden plan passes, there are 11 states where Americans subject to the new rules will face combined capital gain taxes of more than 50%.

www.forbes.com

Under Biden Tax Plan, Capital Gains Tax Will Exceed 50% In 11 States
Robert W. Wood
Senior Contributor
I focus on taxes and litigation.
Follow

2
May 6, 2024,10:16am EDT
are 11 states where Americans will face at least 50% capital gain tax under this plan. If the Biden plan passes, for the taxpayers caught by the new rule, here are the combined state and federal rates taxpayers might pay on their capital gains:


----
Them rich need to pay their fair share....that is why Biden is the best president that America has ever had.
If you have capital gains, the government wants more than 50%
If you have losses, except for a small amount, those losses are yours, not the government's.

Not shocked at the top of this list but 5-10 I'm a little surprised by.

There are some fantastic ways to offset these taxes but there are 2 necessary steps first:
1) you must be married
2) your spouse must have a real estate license and that be at least 51% of their "full-time" work

My Wife and I are doing this for my W2 income. You guys as high-paid associates or partners exiting with capital gains taxes like this stand to benefit even more than I do from this tax strategy. Happy to tell anyone about this in private message, don't want to end up like the cataract docs from the 90's.

 

[percyeye]

I know a lot of this depends on how the partnership agreement is laid out but if a partner does want to leave and no new Doc is coming in to buy them out how do the original partners come up with the cash to buy them out if that number is significant? Do they keep cash on hand or take a loan?

 

[LightBox]

Not shocked at the top of this list but 5-10 I'm a little surprised by.

There are some fantastic ways to offset these taxes but there are 2 necessary steps first:
1) you must be married
2) your spouse must have a real estate license and that be at least 51% of their "full-time" work

My Wife and I are doing this for my W2 income. You guys as high-paid associates or partners exiting with capital gains taxes like this stand to benefit even more than I do from this tax strategy. Happy to tell anyone about this in private message, don't want to end up like the cataract docs from the 90's.

I did this and got a >400k refund from that alone Hopefully, we will just pass on these properties to our children upon our deaths to avoid depreciation recapture.

 

[mjohnsonets]

I did this and got a >400k refund from that alone Hopefully, we will just pass on these properties to our children upon our deaths to avoid depreciation recapture.

So good!

Dying - it's a tax break