Yes, you must add this when mailing or e-file your return, then use a Form 1040-X with no changes and include Form 8594. Either way is acceptable once you know what to use on your 2025 tax return. It's your decision if you prefer to mail your complete return.
Please tell us exactly what you are paying for, i.e., every asset being purchased, then we can provide the exact location to put the information in your tax return. A cost of purchasing a business includes many assets and both you and the seller must agree on how the purchase price is divided among the assets. This is the purpose for Form 8954.
Some examples were provided and shown here for convenience. Until we know exactly what your are purchasing, we can't advise where to enter your costs.
- Goodwill - Section 197 Intangible- Acquired goodwill is amortized straight-line over 15 years
- Equipment - 7 or 5 year property as a rule
- Building - Depreciated over 39 years (nonresidential real estate)
Once we have more details we can further assist you with your return.
@kentchidester
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