Form 8883, Asset Allocation Statement Under Section 338
Form 8883 reports how the deemed sale price is allocated among asset classes when a stock purchase is treated as an asset sale under Section 338. Fill in the official IRS PDF below and download it.
This is the genuine IRS PDF, unmodified. Source: IRS official page.
What is 8883?
Form 8883, Asset Allocation Statement Under Section 338, is used to report information about transactions involving the deemed sale of corporate assets under Section 338. When a qualified stock purchase is treated as an asset purchase because of a Section 338 election, both sides of the deemed transaction report how the aggregate deemed sale price and the adjusted grossed-up basis are allocated among the seven asset classes.
The form is attached to the income tax return on which the deemed sale or purchase is reported. If the allocation changes in a later year, a supplemental Form 8883 is filed to report the increase or decrease. The related election itself is made on Form 8023.
Who files 8883?
- Old target corporations reporting the deemed sale of their assets after a Section 338 election
- New target corporations reporting the deemed purchase of those assets
- Purchasing corporations involved in Section 338(h)(10) elections along with the selling group
- Filers reporting later adjustments to the original allocation on a supplemental Form 8883
How to fill out 8883
- Complete the identifying information for the filer and the other party to the transaction.
- Enter the details of the qualified stock purchase, including the acquisition date and the type of election made.
- Report the aggregate deemed sale price or adjusted grossed-up basis, depending on which side of the transaction you are on.
- Allocate that amount among asset Classes I through VII on the lines provided.
- Download the finished PDF and attach it to the tax return that reports the deemed sale or purchase.
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Frequently asked questions
How is Form 8883 different from Form 8023?
Form 8023 is used to make the Section 338 election itself. Form 8883 is filed afterward with the relevant tax returns to report how the deemed sale price and basis are allocated among the asset classes.
Who files Form 8883 in a Section 338(h)(10) deal?
Generally both the old target (reporting the deemed asset sale) and the new target (reporting the deemed purchase) file it with their returns. The instructions explain the filing requirements for each party.
What if the purchase price changes after I file?
File a supplemental Form 8883 for the year the change occurs, showing the increase or decrease and the revised allocation. The instructions cover how to complete a supplemental statement.