Top Five State And Local Tax Issues To Consider When Buying The Assets Of A Business

Depressed values during an economic downturn may motivate corporate decision-makers to acquire businesses in an effort to improve enterprise capability, market penetration, product mix, and the production process. While business strategies drive the decision to acquire a particular business, the form of the transaction drives a multitude of tax implications. When choosing to acquire the assets of a business, a number of state and local tax issues can significantly affect the overall acquisition cost. This article examines the top five state and local tax issues to consider when acquiring the assets of a business. (I. L. Porwancher, 20 Journal of Multistate Taxation and Incentives, No. 10, 20 (February 2011).)