When you've decided that the time is right to sell your practice, one of the important issues impacting what you get from the transaction is income taxes.
WHAT ARE YOU SELLING?
There are several different types of assets that you might sell, with potentially differing tax treatments from one asset type to another. Additionally, you may be selling those assets inside of a flow-through entity (partnership, limited liability company, or S corporation) or a taxable entity (C corporation or former C corporation that recently elected S corporation status). The type of entity/interest being sold can have an important impact on how assets being sold are accounted for.