Madison Park: partnership income, practice equity, and a lakefront address

The practice-sale problem

A physician group buyout, a law-firm capital account payout, or the sale of a business stake is a capital gain, and above $1 million it now carries the 9.9% rate. A professional who spent 25 years building practice equity will typically realize it within one or two tax years. Real estate gains, by contrast, are exempt from the state tax. For a Madison Park household planning retirement, the order of operations — sell the practice, sell the house, buy the next place — now has a state-tax dimension that did not exist when the plan was first sketched. It is worth revisiting with your CPA, and I can supply the property-side numbers for that conversation.

Madison Park micro-market

The village core carries a walkability premium. Canterbury offers a quieter grid. Waterfront along 43rd Avenue East trades at estate scale, and the co-op and condo stock near the beach serves buyers stepping down from larger homes without leaving the neighborhood. Long-held homes throughout carry large embedded gains: exempt from the state tax at sale, counted toward estate exposure while held.

This is not tax or legal advice. Aditya Kasturi is a licensed real estate broker, not a CPA, attorney, or financial advisor. Figures are illustrative, based on Washington and federal law as understood at the time of writing, and laws change. Confirm any strategy on this page with your CPA and, where relevant, your estate planning attorney before acting.