### Question
How does the law define applicable asset acquisition?


### Answer
Under *26 U.S.C. § 1060*, **applicable asset acquisition** is defined as:

> any transfer (whether directly or indirectly)—



(1) of assets which constitute a trade or business, and



(2) with respect to which the transferee's basis in such assets is determined wholly by reference to the consideration paid for such assets

#### Citation:
  - *26 U.S.C. § 1060*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter O-Gain or Loss on Disposition of Property > PART IV-SPECIAL RULES**

