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Returning Member
posted Mar 14, 2023 2:51:07 AM

Form 8594 & Covenant to Not Compete

Do I allocate what I'm being paid here? What if I have one from previous purchase that I paid for?

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1 Replies
Expert Alumni
Mar 14, 2023 7:53:58 AM

You allocate the amount you're being paid if that is what is in the sales contract that you're subject to.  You'll have to review the contract to answer that.

 

The form 8594 should be filed in the year that the sale occurred.  If you have one from a previous purchase that you did not enter into the tax return for the year of the sale then you should go back and amend that return.

 

@Joe8989