Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Noncompete agreement between 1120S (seller) and LLC

jgcpa
Level 4

Form 8594 includes a noncompete. However, the payment went directly to the Sellers (shareholders/owners) and not into the Inc's bank account. Does the Noncompete payment appear on the 1120S ( either the 4797 as proceeds and cost) or not at all. I am concerned that the proceeds stated on the 8594 will not match the 1120S if I leave off the non-compete. Or, do I make a note on the F8594 to state the noncompete payment was paid directly to the shareholders/owners ?

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Best Answer

Accepted Solutions
IRonMaN
Level 15

Who is supposed be doing the noncompeting according to the agreement - the corp or the person?


Slava Ukraini!

View solution in original post

0 Cheers
4 Comments 4
IRonMaN
Level 15

Who is supposed be doing the noncompeting according to the agreement - the corp or the person?


Slava Ukraini!
0 Cheers
jgcpa
Level 4
I just read the Non-compete agreement. The 3 Principals on the sellers side are the 3 shareholders/owners of the seller.
0 Cheers
jgcpa
Level 4
the noncompete is with the three persons
0 Cheers
IRonMaN
Level 15
Then it wouldn’t show up on the corporate return.

Slava Ukraini!
0 Cheers