turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

jcl9625
Returning Member

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

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions

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".

View solution in original post

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/...>
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies