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When buying or selling a business, Section 1060 of the Internal Revenue Code requires buyers and sellers to allocate the purchase price to be allocated among the assets bought or sold based on the fair market value of those assets.
Use Form 8883 to report information about transactions involving the deemed sale of corporate assets under section 338. This includes information previously reported on Form 8023, Elections Under Section 338 for Corporations Making Qualified Stock Purchases. About Form 8883, Asset Allocation Statement Under Section 338 IRS (.gov) forms-pubs about-form-8883 IRS (.gov) forms-pubs about-form-8883
Asset allocation is how investors split up their portfolios among different kinds of assets. The three main asset classes are equities, fixed income, and cash and cash equivalents. Each asset class has different risks and return potential, so each will behave differently over time. What Is Asset Allocation and Why Is It Important? - Investopedia investopedia.com terms assetallocation investopedia.com terms assetallocation
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