Extract to table

Both the Buyer and the Seller are required to report the purchase price allocation on IRS Form 8594 (Asset Acquisition Statement Under Section 1060), which must be attached to their respective federal income tax returns for the taxable year that includes the closing date

Although the buyer and seller may ultimately disagree on the specific fair market values assigned to particular assets, each party is required to use the residual method and to report the allocation on IRS Form 8594 (Asset Acquisition Statement Under Section 1060)

The fair market value of the assets in each class must be determined using generally accepted valuation methodologies appropriate to the type of asset in question

7 of the Merger Agreement or the resolution of indemnification claims from the escrow — a supplemental Form 8594 must be filed by both parties for the taxable year in which the adjustment occurs

These assumed liabilities must be added to the equity consideration to arrive at the Total Allocable Amount

263(a)-5), certain costs incurred by the buyer in connection with the acquisition must be capitalized into the buyer's basis in the acquired assets, rather than currently deducted