FORM 8594_ PURCHASING STOCK _ NON PUBLIC

It depends.  If you purchased the 100% of the stock, does the agreement say they are now a subsidiary of your parent company? If there was asset purchases detailed in your purchase agreement then you definitely must file Form 8594.

• This form is not included in TurboTax, and must be completed manually.  If you are unsure, you should check with a Tax Professional to be clear about your filing requirement and possibly have then complete only this form for you.  Keep in mind that if you do file this form with your tax return, the seller must file an exact copy with their return as well.

Who Must File: Instructions Form 8594

Generally, both the purchaser and seller must file Form 8594 and attach it to their income tax returns (Forms 1040, 1041, 1065, 1120, 1120-S, etc.) when there is a transfer of a group of assets that makes up a trade or business (defined below) and the purchaser's basis in such assets is determined wholly by the amount paid for the assets. This applies whether the group of assets constitutes a trade or business in the hands of the seller, the purchaser, or both.

• If the purchaser or seller is a controlled foreign corporation (CFC), each U.S. shareholder should attach Form 8594 to its Form 5471.