In other words, the selling doctor must pay taxes on the money when it is received as if it were paid for services rendered. On the other hand, the purchasing doctor must capitalize and amortize the amount paid for the noncompete agreement over a fifteen year period, regardless of the actual term of the agreement. Most doctors lease their office space from a landlord. Commercial leases invariably include a provision that requires approval by the landlord of the new tenant. If you fail to obtain the landlord's approval prior to the sale of the business, in all likelihood the selling doctor will continue to be obligated to make lease payments.
Patient records are an integral part of every practice.
However, the purchasing doctor has no right to review those records without the patients' permission. When a practice is transferred, the purchasing doctor typically agrees to become a custodian of the records. When an existing clinic patient sees a new doctor for the first time, that patient should sign a release of his or her records to the purchasing doctor. Another issue is patient retention. Often, the selling doctor will write a letter of introduction to all existing patients advising them that the practice has been transferred and encouraging them to see the purchasing doctor when they need treatment.