This form is an Asset Purchase Agreement. The seller agrees to sell to the buyer certain assets which are listed in the agreement. The form also provides that the buyer will not be responsible for any unfilled orders from the customers of the seller.
Asset Acquisition Form 8594 Instructions In Suffolk
Category:
State:
Multi-State
County:
Suffolk
Control #:
US-00419
Format:
Word;
Rich Text
Instant download
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FAQ
Sellers usually prefer to allocate as much as possible to capital gain assets and intangibles rather than ordinary income assets, whereas buyers typically want to allocate to assets they can depreciate rapidly. Therefore, the allocation is often a negotiated component of a sales agreement.
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.)
The following tax forms are typically used when selling a business: Form 8594, Asset Acquisition Statement. Form 4797, Sales of Business Property.
Acquisition accounting explained As part of acquisition accounting, you must report the acquired company's fair market value between the net tangible and intangible assets recorded on your balance sheet. If there's any difference between the two types of assets, this is recorded as goodwill.