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Form 8594 (Rev July 1998 ) - irs

Form 8594 (Rev July 1998 ) - irs-2025

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The document is Form 8594, an Asset Acquisition Statement required by the IRS for reporting the sale of a group of assets that constitutes a trade or business. It outlines the necessary information for both buyers and sellers, including asset classes, fair market values, and allocation of sales prices. The form must be attached to federal income tax returns and is used to determine tax implications related to asset acquisitions, including goodwill and going concern value.

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Click ‘Get Form’ to open it in the editor.
In Part I, enter your name and identification number as shown on your tax return. Specify whether you are the buyer or seller by checking the appropriate box.
Provide the name, address, and identification number of the other party involved in the transaction. Ensure accuracy as this information is crucial for tax reporting.
Enter the date of sale and total sales price in the designated fields. This information is essential for determining tax implications.
In Part II, allocate the sales price among different asset classes. Enter both the aggregate fair market value and allocation for each class accurately.
If applicable, complete Part III for any amendments regarding increases or decreases in consideration. Provide reasons and relevant tax year details.

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How to report form 8594 on tax return?

How to Fill Form 8594 Step by Step Step 1: Enter Buyer and Seller Information. Step 2: Add Details About the Sale. Step 3: Classify the Assets by Category. Step 4: Complete Part II (if youre the buyer) Step 5: Complete Part III (if youre the seller) Step 6: Attach Form 8594 to Your Tax Return.

What is the IRS form 8594 used for?

Purpose of Form Both the seller and purchaser of a group of assets that makes up a trade or business must use Form 8594 to report such a sale if goodwill or going concern value attaches, or could attach, to such assets and if the purchasers basis in the assets is determined only by the amount paid for the assets.

What happens if I dont file form 8594?

Failing to file Form 8594, or filing it with inconsistencies, can lead to severe consequences: IRS reallocation of values: The IRS can disregard the reported values and reallocate the purchase price based on its own assessment, often resulting in less favorable tax outcomes.

When should form 8594 be filed?

Both the purchaser and the seller must attach Form 8594 to their respective tax returns in the first year of the sale. The allocation of the consideration paid determines the sellers gain or loss and the depreciable or amortizable amount of the purchase price, if any, for the purchaser.

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