It is seldom important that the buyer and seller agree on the allocation of the sales price among the assets being sold, since the allocation will determine the potential tax liability that would be incurred by the seller but that could by passed on to the buyer through to terms of the sales contract.

Question

Quizplus · Accepted Answer

It is important for the buyer and seller to agree on the allocation of the sales price among the assets being sold, as it will affect the tax liabilities of both parties. The allocation should be documented in the sales contract to avoid any disputes or misunderstandings.

It Is Seldom Important That the Buyer and Seller Agree