You (or the purchaser or transferee) must complete Form CBS-1, Notice of Sale, Purchase, or Transfer of Business Assets. First create nonval material forthe asset to be procured.In an asset sale, the new owner purchases the business's physical assets. The seller retains all rights to the legal entity. This also demonstrates the importance of sepa- rately listing the assets in the asset purchase agree- ment along with their corresponding portion of the. An asset purchase agreement is a written legal instrument that formalizes the purchase of a business or significant business asset. IRS Form 8594 defines seven asset classes to which the entire purchase price must be allocated. Asset purchase agreements are a useful way to: Carve out certain assets of a business without taking on liabilities or debt obligations.