A buyer acquires 100% of the seller's business in an asset deal where the seller's assets have a tax basis of $20 million and the purchase price was $50 million. What is the buyer's tax basis in the seller's assets after the deal?

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In an asset acquisition, the buyer typically takes a new tax basis in the acquired assets equal to the purchase price paid for those assets. In this scenario, the purchase price for the seller's assets is $50 million. Therefore, after the acquisition is completed, the buyer's tax basis in the seller's assets will match the amount they paid, which is $50 million.

This approach aligns with tax principles that dictate that when assets are purchased, the buyer's tax basis in those assets is established by the cost incurred to acquire them. As a result, the buyer will be able to depreciate or amortize those assets based on the $50 million basis over time, reflecting the market value of the acquired assets, rather than the seller's historical tax basis.