IRS Form 8594. Asset Acquisition Statement Under Section 1060

Form 8594, also known as the Asset Acquisition Statement Under Section 1060, is an IRS form that is used to report the sale of a business. The main purpose of this form is to allocate the purchase price among the assets being acquired and to determine the tax consequences of the sale for both the buyer and the seller.

The form consists of several parts, including Part I, which covers the buyer's information, Part II, which covers the seller's information, and Part III, which covers the asset allocation. There are also additional sections for certain other information, such as the terms of the sale and any liabilities assumed.

When completing Form 8594, it is important to consider the specific details of the sale, such as the purchase price, the assets being acquired, and any liabilities assumed. This information will be used to allocate the purchase price among the assets and to determine the tax consequences of the sale.

In addition to the form itself, you may need to attach additional documents such as a purchase agreement or a schedule of the assets being acquired. It is important to keep accurate records and maintain these documents for future reference.

Some examples of when Form 8594 might be required include the sale of a business, the acquisition of a division or subsidiary, or the purchase of a partnership interest.

Strengths of Form 8594 include its ability to allocate the purchase price among the assets being acquired, which can help to minimize tax consequences for both the buyer and the seller. Weaknesses may include the complexity of the form and the need for accurate record-keeping.

Alternative forms or analogues to Form 8594 may include other IRS forms such as Form 8824 for like-kind exchanges or Form 1065 for partnerships. The main difference between these forms is the specific type of transaction being reported and the reporting requirements.

To fill and submit Form 8594, you can either do so electronically through the IRS e-file system or by mailing a paper form to the appropriate address. Once submitted, the form will be stored electronically by the IRS for future reference and auditing purposes.