In an asset sale, the seller may face double taxation. Intangible assets may be subject to capital gains tax.In the case of an asset purchase, many of the assets will be subject to a lower tax rate, but some assets, such as inventory, will be taxed as ordinary income. Asset sales and equity sales offer unique advantages and disadvantages that must be carefully considered when deciding to sell a business. This FindLaw article helps you make the decision to purchase an existing business's stock sale or asset sale. Each sale has different pros and cons. These sales favor sellers, because the proceeds receive a lower capital gains tax and sellers are less responsible for future business liabilities. Advantages: Asset sales allow the buyer to pick and choose which assets and liabilities they want, potentially avoiding unwanted debts or legal issues.