Cash is tricky.

Everyone loves cash. I do. You do. (My kids do!). The only people who hate it are the IRS. Why? It's tough to track! Buyers and sellers both have to be extra careful in a transaction when it comes to cash. Buyers have to make sure that cash patients and charts are "real". Sellers have to make sure that ALL of their income is able to be documented. Either by bank deposits or signed receipt books. What happens if you can't verify the cash receipts? Typically, banks will not lend on that portion of the value if it is significant and buyers will renegotiate value if they feel the cash payments cannot be proven up properly. A seller that collects $400,000 but reports $100,000 on the tax return had best have a bank account that shows most of the deposits. Because guess what! If you can't, the sales price will be based on the $100,000 by the banks! Sellers, please call our Broker, Reno Iannini to find out how to maximize your practice value and check out our website at www.firstchoicedds.com for all of our listings!
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