Form 8594

[rfk]

Has anyone ever worked with Form 8594, Asset Acquisition Statement and its components of reporting?

I just need to know if what the important elements of it are for submission. I am not sure if my client has the "Other party's identifying number," though.

Thank you.

Ray

[taxmandan]

Form 8594

I've done three this year, so far. The important part is that both buyer and seller allocate the price to the correct asset class and that both 8594s match. They each have to attach it to their respective returns and your client will need the SSN/EIN of the other party. The tax treatment of the sale proceeds has to be consistent and that is what theIRS is checking.

[rfk]

Thanks, TaxManDan.

Ray

[oceanlovin'ea]

Agreement

is the key part to this form. Both parties have to submit the form attached to their return.

I have had to do 1 last year and 1 this year. Client bought business in 2004 and sold it in 2005. So I had to do one for him as buyer and then this year as the seller. When he bought it last year, the seller acted like he didn't know what we were talking about. I told my client, his preparer should have already talked to him about this and prepared the form. But just in case, I made 2 copies, one for buyer and one for seller and gave it to my client to give to seller.

The classes are confusing, but most everything goes in Part V. Goodwill in Part VI or VII.

Just getting them to agree on breakdown could be the most difficult.

Linda F