Form 8594-2026

See details

4.7 out of 5

48 votes

The document is an Asset Purchase Agreement between a Seller and a Buyer, outlining the terms for the sale of business assets. It details the assets being sold, liabilities assumed by the Buyer, purchase price allocation, payment terms, and conditions for closing. The agreement includes representations and warranties from both parties, covenants regarding business operations prior to closing, indemnification clauses, and provisions for termination. It serves as a comprehensive legal framework for the transaction.

Here's how it works

01. Edit your asset sale form online

Type text, add images, blackout confidential details, add comments, highlights and more.

02. Sign it in a few clicks

Draw your signature, type it, upload its image, or use your mobile device as a signature pad.

03. Share your form with others

Send form 8594 via email, link, or fax. You can also download it, export it or print it out.

How to use or fill out form 8594 with our platform

Ease of Setup

DocHub User Ratings on G2

Ease of Use

DocHub User Ratings on G2

Click ‘Get Form’ to open it in the editor.
Begin by entering the date at the top of the form. This is crucial for establishing the timeline of the agreement.
Fill in the names of both the Seller and Buyer in their respective fields. Ensure that all parties are correctly identified to avoid any legal issues.
In Section 1, list all assets being sold, including equipment and inventory. Refer to Exhibit 'A' for a detailed inventory list if available.
Specify any liabilities that Buyer will assume under Section 1.2, clearly indicating which obligations are included or excluded.
Complete Section 3 by detailing the purchase price allocation among different asset categories, ensuring accuracy for tax purposes.
Review all sections for completeness and accuracy before saving your changes. Utilize our platform's features to sign and share the document securely.

Start using our platform today to streamline your form completion process for free!

be ready to get more

Complete this form in 5 minutes or less

Get form

Got questions?

We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

Do I have to report every stock transaction on form 8949?

If you received a 1099-B for stock sales, youll need to report each transaction on Form 8949. Learn how to complete this form, including the details required for short- and long-term sales, and how it affects your tax return.

What are the classes of assets on form 8594?

What is the Purpose of IRS Form 8594? Class I: Cash and Bank Deposits. Class II: Securities, including Actively Traded Personal Property and certificates of Deposit. Class III: Accounts Receivables. Class IV: Stock in Trade (Inventory) Class V: Other Tangible Property, including Furniture, Fixtures, Vehicles, etc.

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 are the requirements for asset sale?

In an asset sale, both parties must agree on how to allocate the total purchase price across different asset classes, as this affects taxation for both the buyer and seller. The IRS has specific guidelines for allocation, and both parties must report the same figures to avoid red flags.

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.

form 8594 instructions

Form 8594 instructions Form 8594 pdf Form 8594 example Form 8594 classes When is Form 8594 required Form 8594 instructions pdf Form 8594 prepaid expenses Class Form 8594 Class V

Who needs to file form 8594?

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 is the 8594 form 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.