A taxable asset purchase allows the buyer to "step up," or increase, the tax basis of the acquired assets to reflect the purchase price. Below is a general due diligence checklist with the first 8 of 16 items to cover your bases in a business or asset purchase transaction.The buyer can step in the day you own the business and be profitable. You will need to allocate the amount reflected on form 8594 among all the assets. A typical method is to allocate the proceeds based on the original cost. The local sellers use tax is due monthly, with returns and remittances to be filed on or before the 20th day of the month for the previous month's sales.