Both the seller and purchaser of a group of assets that makes up a trade or business must use Form 8594 to report such a sale. Conversely, generally an asset sale will be taxable to the selling business in all states the business operates in and has income tax nexus.Use Form 4797 to report: The sale or exchange of property. The involuntary conversion of property and capital assets. Form 8594 is a tax document required in certain business sales where the buyer acquires assets rather than stock or equity. IRS Form 8594 walkthrough (Asset Acquisition Statement under IRC Section 1060). If you are selling the assets of your business, as opposed to the stock, you'll need to allocate the purchase price among the assets for tax reasons. Learn the tax implications for each type of sale. In an asset sale, the new owner purchases the business's physical assets. The seller retains all rights to the legal entity.