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Form8594Asset Acquisition Statement OMB No. 15450074Under Section 1060(Rev. November 2021) Department of the Treasury Internal Revenue ServiceAttachment Attach to your income tax return. Go to www.irs.gov/Form8594.

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Related content

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Purchase price allocation is a process in which the sale price of a property is allocated into different categories to determine which parts of the property can be depreciated. What you hope to achieve, however, can depend on whether you're the buyer or the seller. Land itself can't be depreciated until it is sold.

In a non-stock sale, the usual principle is that the purchase price of the company's assets should be allocated based on fair market value. The buyer and the seller will negotiate the allocation of purchase price for these assets so that neither party is disadvantaged by the sale.

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. the purchaser's basis in the assets is determined only by the amount paid for the assets.

How to Perform Purchase Price Allocation (Step-by-Step) Step 1 → Assign the Fair Value of Identifiable Tangible and Intangible Assets Purchased. Step 2 → Allocate the Remaining Difference Between the Purchase Price and the Collective Fair Values of the Acquired Assets and Liabilities into Goodwill.

Purchase price allocation is the process of assigning the purchase price of a business to the assets sold for the purposes of determining taxes owed by the seller and reporting the sale to the IRS.

How to Perform Purchase Price Allocation (Step-by-Step) Step 1 → Assign the Fair Value of Identifiable Tangible and Intangible Assets Purchased. Step 2 → Allocate the Remaining Difference Between the Purchase Price and the Collective Fair Values of the Acquired Assets and Liabilities into Goodwill.

Both parties must file Form 8594 (Asset Acquisition Statement), which is a form the Internal Revenue Service (IRS) uses to allocate the entire purchase/sale price of the business into different classes of assets. Both the seller and buyer of the business must file the form with their tax returns.

Generally, both the purchaser and seller must file Form 8594 and attach it to their income tax returns (Forms 1040, 1041, 1065, 1120, 1120-S, etc.)

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232