An asset sale is the purchase of individual assets and liabilities, whereas a stock sale is the purchase of the owner's shares of a corporation. An asset sale is when only the individual assets are purchased.In a stock sale, the buyer acquires equity from the target company's shareholders. A seller may pay higher income taxes in an asset sale. Asset Sale lets buyers choose specific assets and liabilities; Stock Sale doesn't. Stock sales tend to attract taxes too. Generally, a stock sale is better for the seller and an asset sale is better for the buyer. Form 8594 is a tax document required in certain business sales where the buyer acquires assets rather than stock or equity. Learn the tax implications for each type of sale.