See how much you could save in taxes each year based on how you allocate your practice purchase price.
When you buy a dental practice, the IRS requires you to split the purchase price across asset categories like goodwill, equipment, and patient records. Each category depreciates on a different schedule — and how you allocate directly determines your annual write-offs. Adjust the sliders below to model different scenarios.
Drag the sliders or click any value to type a custom amount.
| Category | Allocated | Deduction/yr | Savings/yr |
|---|---|---|---|
Goodwill | $175,000 | $11,667 | $3,850 |
Covenant | $50,000 | $3,333 | $1,100 |
Equipment | $125,000 | $25,000 | $8,250 |
Leasehold | $50,000 | $3,333 | $1,100 |
Records | $50,000 | $3,333 | $1,100 |
Supplies | $25,000 | $25,000 | $8,250 |
Real Estate | $25,000 | $641 | $212 |
| Total | $500,000 | $72,307 | $23,861 |
Estimated Annual Tax Savings
$23,861/yr
Based on 33% federal marginal rate. State taxes may increase savings.
Minty pairs you with an acquisition team that structures the deal, benchmarks the terms, and handles the business after closing — so you can focus on dentistry.
Depreciation periods and allocation guidance are based on the following sources. Consult a tax professional for advice specific to your situation.
Disclaimer: This calculator is for educational purposes only and does not constitute tax, legal, or financial advice. Federal tax brackets reflect projected 2026 rates after TCJA expiration and may change if legislation extends current rates. Equipment depreciation uses the 5-year MACRS default; certain dental equipment may qualify for 7-year recovery. Section 179 expensing or bonus depreciation may allow accelerated write-offs. Always consult a qualified CPA or tax advisor before making purchase allocation decisions.