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. Form 8594 is a tax document required in certain business sales where the buyer acquires assets rather than stock or equity.You will need to allocate the amount reflected on form 8594 among all the assets. A typical method is to allocate the proceeds based on the original cost. Use Form 4797 to report: The sale or exchange of property. The involuntary conversion of property and capital assets. In an asset sale, the new owner purchases the business's physical assets. The seller retains all rights to the legal entity. The purpose of Form 8594 is to determine the treatment of the assets for tax purposes, establish the basis of the acquired assets for the purchaser.