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Home Q&A Forum Are there tax implications in an asset purchase agreement?

Business Contracts

Asset Purchase Agreement

North Carolina

Asked on Oct 11, 2023

Are there tax implications in an asset purchase agreement?

I am in the process of purchasing a business and have been presented with an asset purchase agreement. Before signing the agreement, I am interested in understanding the potential tax implications related to the transaction. I want to make sure that I understand the full scope of the financial obligations I am committing to and any potential future liabilities I may face.

1 Attorney answer

Answer

Business Contracts

North Carolina

Answered 271 days ago

N'kia N.

ContractsCounsel verified

Business Lawyer
Licensed in North Carolina
Free Consultation

An asset purchase agreement is generally considered a taxable transaction for the buyer. However, there are sometimes ways for the buyer to reduce its tax liability. If you are considering entering into an asset purchase agreement, you should also consider consulting with a tax professional.

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