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. Learn the tax implications for each type of sale.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. Stock sales tend to attract taxes too. Asset Sale lets buyers choose specific assets and liabilities; Stock Sale doesn't. While stock sales occur between the shareholder (the business owner) and the buyer, asset sales occur between the company itself and the buyer. The short answer is that a stock sale is better for you, the seller, while the buyer benefits from an asset sale. This section prescribes rules for qualification for a section 338(h)(10) election and for making a section 338(h)(10) election.