Search Help


Enter one of more keywords to search. Use quotes for “exact phrase.” Note that '*' and '?' wildcards are supported.

When your search results appear, you can refine your search further: Sort for only results in which all search terms appear AND/OR sort by chronological order.

Article Date:
April 2017


Word Count:
1603

 

 

How to Buy a Target’s Stock and Treat the Deal as an Asset Purchase


If you are considering buying an incorporated business (the target company), you would probably prefer to buy the company’s assets as opposed to buying its stock.

 

That’s because you as the buyer can step up (increase) the tax basis of the purchased assets to reflect the purchase price.1

 

The step-up results in higher post-purchase depreciation and amortization deductions for depreciable and amortizable assets, and lower taxable gains when other assets (such as receivables and inventory) are sold or converted into cash.

 

But all is not rosy. Asset purchases also have some negative considerations for buyers. For example, if the target company owns ... Log in to view full article.

Log in to view full article
Already a subscriber?
 
Email Address

 
Password

Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
 
with a money-back guarantee



 

SS