The allocation of the price of a business among various asset classes for tax purposes, such as inventory, customer lists, goodwill, land, buildings, non-compete, etc.

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The allocation impacts both the seller's and buyer's tax consequences and is often heavily negotiated between the parties. IRS 8594 (Asset Acquisition Statement) must be filed with the IRS at the end of the tax year for the purchase or sale of a business. There are technically seven categories of assets in IRS 8594.