Buying & Selling Businesses | Attorneys in Madison, MS

As opposed to mergers and/or acquisitions, more commonly, one company will acquire all assets of another company. Asset purchase agreements can be an extremely tax-effective way in which to buy or sell substantially all of the assets of a corporation or business entity.

Contact Barnes, Bailey & Janoush, P.A. now to secure proficient legal counsel in Madison, MS and navigate the business buying and selling process with confidence.

While Section 1060 of the Internal Revenue Code offers flexibility for buyers and sellers to structure transactions for effective tax planning, it's crucial for both parties to exercise caution to steer clear of potential tax pitfalls within asset sales. Sections 1245, 1250, and 197 of the Internal Revenue Code introduce various taxable recapture provisions that sellers and buyers must address. Buyers should also be vigilant in avoiding allocations leading to extended depreciation or amortization periods, which could result in significant adverse tax consequences.