What IRS form is required to be filed if I bought a business and goodwill exists ?
Answer:
Generally, both the buyer and seller of a group of assets that make up a trade or business must fill out IRS Form 8594 to report the sale if goodwill or going concern values are involved. The sales price is allocated among the transferred assets using the residual method formula (proportion of sales price to an assets fair market value at date of sale) in a specific order set out on Form 8594. Speak to your local CPA about the sale of your business.
