Follow-up questions:
- Was this a single agreement or was the noncompete a separate agreement?
- Is the noncompete amount being paid over time as well?
- Typically noncompete agreements are separate from the asset acquisition since it is typically not the company that is agreeing not to compete, but a specific individual. There are of course exceptions.
- What is happening to the S corp? Staying around or liquidating?
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
