If I sell my medical practice (no debt) for $500,000 and I do not show any ordinary income for this year… Will I still be required to pay a capital gains tax on the sale of the business? If so, what bracket would I be paying in?
The short answer is yes, you’ll still owe taxes. The sale of business assets is typically taxed as capital gain. If you provide consulting or other services to the new owner, that usually would be taxed as ordinary income. Here’s a recent article about how capital gains taxes work:
A tax pro could offer specific advice on how best to structure the sale to minimize what you owe.