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New Member
posted Oct 11, 2021 8:41:07 PM

I purchased a LLC in 2020. It is run as a disregarded entity. Where can I show my purchase of it? Do I depreciate that investment?

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3 Replies
Level 15
Oct 11, 2021 8:52:12 PM

This is one of those situations where professional assistance may be wise if you don't know what you are doing  ... so your answer depends on what you actually bought ... did you and the seller fill in and file a form 8954 ? 

 

 https://www.irs.gov/forms-pubs/about-form-8594

 

https://www.irs.gov/businesses/small-businesses-self-employed/sale-of-a-business

New Member
Apr 7, 2024 2:30:52 PM

I have the same question (I bought a small biz and it's disregarded for tax purposes). Should I use Turbo tax to e-file all my tax returns, except for form 8594? Or should I print everything out from Turbo tax, and mail them together with form 8594?

Expert Alumni
Apr 9, 2024 8:23:24 PM

You should attach the  Form 8594 Asset Acquisition statement to your business tax return when you file it. If you are using the TurboTax Business software to file a partnership or corporate return, you will find the form in the program so you can e-file it with the tax return. If you are filing a schedule C for sole-proprietorship income or single member LLC, you will need to print and mail your return as the Form 8594 is not available in the personal TurboTax programs.

 

You should enter the assets purchased by cost in the asset entry section of the program so they can be depreciated. Goodwill will be also be entered as a section 179 intangible asset and amortized over a period of fifteen years. You enter both of these in the year the business was purchased.