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Prior year instalment sale has ordinary income portion

dimariacpa
Level 1
 
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2 Replies 2
sjrcpa
Level 15

The ordinary income portion was fully taxed in the year of sale.


ex-AllStar
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dimariacpa
Level 1

Thanks that is how shown as It is part of a sale of business  -  The ordinary income is covenant not to compete and the capital asset is book of business.  Thanks  This is how prior accountant showed total instalment of $20K for 2018 and 2019, $19K to the capital gain and $1,000 to ordinary income,  

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