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jcl9625
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I received $75,00 for a non-compete agreement. Where do I report that on my 1040?

 
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I received $75,00 for a non-compete agreement. Where do I report that on my 1040?

I would enter it as a business "asset" with $0 Basis, and the selling price.  Enter the "placed in service" date so that you held it for LESS than one year (which will properly report it as "ordinary income".

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4 Replies

I received $75,00 for a non-compete agreement. Where do I report that on my 1040?

Can you give more details about the situation?  For example, do you have a business and an employee violated a non-compete agreement, therefore paying you that money?
jcl9625
Returning Member

I received $75,00 for a non-compete agreement. Where do I report that on my 1040?

I sold a business and the non-compete was part of the sale price.

I received $75,00 for a non-compete agreement. Where do I report that on my 1040?

I would enter it as a business "asset" with $0 Basis, and the selling price.  Enter the "placed in service" date so that you held it for LESS than one year (which will properly report it as "ordinary income".

I received $75,00 for a non-compete agreement. Where do I report that on my 1040?

Section 197 Intangible, as per <a rel="nofollow" target="_blank" href="https://www.irs.gov/publications/p544#en_US_2016_publink100072521">https://www.irs.gov/publications/...>
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