Kara Cobb

When selling a veterinary practice, many owners focus on the big-ticket items like equipment value, goodwill, and real estate. However, a critical but often overlooked component of the sale is the treatment of “hot assets” — a category of assets that can significantly affect your tax liability. In the context of the Internal Revenue Code (IRC §751), “hot assets” refer to certain types of property that generate ordinary income when sold, rather than the more favorable capital gains treatment.

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