How do companies often realize future tax savings through asset sales?

Companies often realize future tax savings through asset sales primarily by stepping up the tax basis of acquired assets. When a company sells an asset at a profit, the tax basis of that asset can increase for the new owner, which can lead to reduced taxable gains in future transactions. This process is critical in merger and acquisition situations, where the acquiring company benefits from a higher basis for depreciation purposes.

A higher tax basis enables the acquiring company to deduct more depreciation expense over the life of the asset, thereby reducing taxable income in future periods. This method effectively triggers tax savings, as it increases the amount that can be deducted when calculating taxable income, aligning the expense recognition more closely with the asset's economic use.

The other options do not accurately capture the primary mechanism through which tax savings are realized in the context of asset sales. Decreased operational compliance costs and reductions in workforce relate to cost management and efficiency rather than tax strategies, while acquiring new market shares focuses on revenue generation rather than directly impacting tax liabilities.