Sell Dermatology Practice Defer Capital Gains

Selling Your Dermatology Practice Without the IRS / State Tax Hit

The dermatology MSO consolidation wave is one of the largest in healthcare — Schweiger Dermatology Group, Forefront Dermatology, Pinnacle Dermatology, Advanced Dermatology and Cosmetic Surgery, US Dermatology Partners, Riverchase Dermatology, Anne Arundel Dermatology, Epiphany Dermatology — paying 6-12x EBITDA. A $2M EBITDA practice = $12M-$24M sale.

The math — $15M dermatology practice sale

StateState rateLump-sum tax10-yr §453 taxDelta
California13.3% + 1%~$5.70M (38%)~$4.30M (29%)$1.40M
New York10.9%~$5.30M~$4.00M$1.30M
New Jersey10.75%~$5.28M~$3.98M$1.30M
Texas / Florida / Tennessee0%~$3.57M~$2.69M$880K

Assumptions: $15M, 75% goodwill, 15% equipment ($2.25M — lasers, biopsy, Mohs), 10% inventory + product.

Dermatology-specific tax wrinkles

  1. MSO structure. Most consolidator deals run through MSO/Friendly PC structure. APA governs §453 mechanics.
  2. Clinical vs cosmetic revenue split. Clinical (insurance) lower multiple, cosmetic (cash pay) higher.
  3. Mohs surgery sub-practice. Separately valued; high-equipment, high-margin sub-business.
  4. Cosmetic product retail (Obagi, SkinCeuticals, ZO Skin Health). Inventory carve-out, ordinary income.
  5. Pathology lab carve-out. If practice owns dermpath lab, separately valued.
  6. Laser equipment §1245. Fraxel, V-Beam, Excimer, Picosure — high recapture exposure.
Before you read further

What is the tax bill on your practice sale going to be?

Send me the sale price and rough basis and I'll email you the actual number within one business day — plus the Seller's Guide to §453. If it doesn't fit your deal, I'll tell you that plainly.

No retainer · no obligation · the carrier compensates the broker, not you.

When this fits

  • $3M+ sale
  • MSO-platform buyer
  • Strong cosmetic + clinical mix

When it doesn't

  • Solo derm with minimal goodwill
  • Mostly equipment sale

How I work

Hans Goldstein, IRC §453 specialist. Pacific Life, Independent Life, USAA Life and other A-rated Fortune 500 carriers — 50 states. Free fit-check.

Hans Goldstein

Find out what your practice sale tax bill actually is — and what you can do about it

No retainer. The carrier compensates the broker — not you.

Find out what your tax bill actually looks like before you sell — including the parts your CPA may not raise until the return is already being prepared.

Most people find out what they owe after the sale closes, when nothing can be changed. A short conversation now tells you the number, which layers apply to your situation, and which options are still open while the sale is still in front of you.

  • What you will actually owe — federal, the 3.8% surtax, recapture and your state
  • Which of those layers you can still do something about
  • Whether spreading the sale changes the number in your case
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Hans Goldstein · 615-808-9731 · Goldstein & Co. LLC · This is an educational conversation, not tax advice. Bring your CPA in before you file.

Educational. Not tax or legal advice.

Run your specific numbers

The calculator runs your sale through real 2026 federal + state tax brackets and shows §453 savings vs lump sum side-by-side.

Run the calculator → 615-808-9731
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