The non compete was in the sale contract and also a separate form was created (it is for 5 years). It is for the company sold and for myself. There was no specific value attached to the non-compete...I need to come to agreement with the buyer and submit Form 8594 (we are on good terms and it shouldn't be a problem). The deal was $300,000 up front (Dec 2021) and $325,000 paid in monthly installments during 2022.
After reading more about the classifications, I believe the breakdown would be more like $300k for Goodwill, $300k for Going Concern, and $25k for non-compete.
the S-Corp will be liquidated during 2022. It is basically a shell right now.
Thank you for any help provided 😃
