There is a real disadvantage the seller in not being able to set up a new depreciable base based on the new purchase price you are paying for the business. An asset sale will likely result in a combination of gain taxed at both ordinary and capital gains rates, depending on the nature of the individual assets.In an asset sale, the seller may face double taxation. Intangible assets may be subject to capital gains tax. The purpose of this fact sheet is to discuss and illustrate correct income tax reporting when business assets are sold. In an asset sale, the buyer typically avoids inheriting your liability problems. Asset sales and equity sales offer unique advantages and disadvantages that must be carefully considered when deciding to sell a business.