Dentist Sells His Practice for $1.2 Million. Nobody Told Him It Means Eight Years of Medicare Surcharges.

The article highlights a dentist’s multi-year installment sale strategy (spread across eight years) designed to reduce the immediate tax hit, but an unpublicized surcharge effectively converts the installment note into a “six-figure Medicare trap.” The CPA describes the plan as smart tax planning, yet the Medicare surcharge risk appears to have been insufficiently disclosed, turning a tax-minimization approach into a large unexpected liability.