Common Contracts
1 similar Asset Transfer Agreement contracts
Asset transfer agreement pdfAsset Transfer Agreement • June 11th, 2021
An asset purchase agreement, or “APA“, allows a business to sell its tangible or intangible property. Examples of a business’s assets include machinery, equipment, customer lists, trademarks, patents, and any other valuable property. This agreement is only for the purchase of assets mentioned in the agreement and does not include the liabilities of the business. Table of Contents An asset purchase is the act of a buyer purchasing all or a portion of a business’s assets. Depending on the asset, the seller may be liable to pay ordinary income tax or capital gains depending on the assets sold. Asset Purchase vs Stock Purchase The main difference with an asset purchase is a buyer will be obtaining ownership of the asset only with no liabilities. In a stock purchase agreement, the buyer assumes ownership of all the assets and liabilities of the entity. Difference Asset Purchase Stock Purchase Tax Treatment Capital assets are taxed as capital gains, other assets are taxed as ordinary income.
