jgcpa
Level 4
12-07-2019
08:45 AM
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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 ?
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IRonMaN
Level 15
12-07-2019
08:45 AM
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Who is supposed be doing the noncompeting according to the agreement - the corp or the person?
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jgcpa
Level 4
12-07-2019
08:45 AM
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I just read the Non-compete agreement. The 3 Principals on the sellers side are the 3 shareholders/owners of the seller.
jgcpa
Level 4
12-07-2019
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the noncompete is with the three persons
IRonMaN
Level 15
12-07-2019
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Then it wouldn’t show up on the corporate return.
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Slava Ukraini!