Abstract
Daniel J. Schulte, MDA Legal Counsel, addresses the legal and tax implications of 'rollover equity' when dentists sell their practices to private equity-backed buyers. The article outlines typical shareholder and buy-sell agreement restrictions, noting how equity is often subject to vesting and employment covenants. Schulte explains the critical importance of making an Internal Revenue Code Section 83(b) election within 30 days of closing. Failing to file this election results in taxation at high ordinary income rates as the stock vests, whereas a timely election accelerates tax payments but secures lower capital gains tax rates upon eventual sale.
Recommended Citation
Schulte, Daniel JD
(2026)
"Dentistry and the Law - Understanding ‘Rollover Equity’ When Selling Your Practice,"
The Journal of the Michigan Dental Association: Vol. 108:
No.
9, Article 4.
Available at:
https://commons.ada.org/journalmichigandentalassociation/vol108/iss9/4
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