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Arthur Rubin
Arthur Rubin, Tax Preparer
Category: Tax
Satisfied Customers: 1493
Experience:  22 years of tax preparation experience, including individual, trust, and estate returns.
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How or payments on a ten year note on Non Compete Agreements

Customer Question

How or payments on a ten year note for compensation on Non Compete Agreements taxed
Submitted: 6 months ago.
Category: Tax
Customer: replied 6 months ago.
I am getting Paid $400,000 ten year note at 5% interest for a non compete. Can report this income as I receive it or must I report it all the first year
Expert:  Arthur Rubin replied 6 months ago.

If you were issued a note, and you are receiving payments on the note, then the entire face value of the note is taxable when you were issued the note (which might be in the year before you started receiving payments). The interest is taxable when received.

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