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March 23, 2025
Question

Should the total business acquisition price be included on the allocation of fair market value? for the form 8594

  • March 23, 2025
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    March 24, 2025

    Yes, generally the total business acquisition should be included in the allocation of fair market value on Form 8594. This form is used to report the sale of a group of assets that make up a trade or business, and the allocation of the purchase price among these assets  is normally based on their fair market values

     

    For more details, you can refer to the IRS instructions for Form 8594 and this guide on completing Form 8594.