jlew1229
Level 3
01-13-2021
02:08 PM
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Can a covenant not to compete be part of the installment sale, or does all the gain need to be recognized in the year of the sale?
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sjrcpa
Level 15
01-13-2021
02:15 PM
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Yes and no. It's ordinary income. Taxable each year as paid.
Ex-AllStar
jlew1229
Level 3
01-13-2021
02:47 PM
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Thank you !!
George4Tacks
Level 15
01-13-2021
04:35 PM
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You may also need to file Form 8594.
Here's wishing you many Happy Returns
sjrcpa
Level 15
01-13-2021
04:55 PM
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You're welcome
Ex-AllStar