Selling or Buying a Business: Form 8594

It is very common when selling or buying a business that only the assets of the business are sold or purchased. Both the buyer and seller of the business assets must report to the IRS the allocation of the value paid for those assets among section 197 intangibles (like goodwill, customer lists, etc.) and the other tangible types of business assets (property, equipment, inventory, accounts receivable, etc.). The IRS reporting is handled on Form 8594, Asset Acquisition Statement Under Section 1060. Form 8594 is attached to both the buyer and seller’s tax return in the year in which the asset sale/purchase occurred. Ensuring the that Form 8594 is properly filled out is important. Click here to contact Paul to assist you with preparation of this form or for other tax help in buying or selling your business.

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