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?
I sold a business and the non-compete was part of the sale price.
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".
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/p544#en_US_2016_publink100072521</a>