Article Date:
June 2017

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Buying a Business? Tax Planning for the Noncompete Agreement

Noncompete agreements are commonly included in business purchase transactions to prevent the seller from competing against the buyer (you), at least over the term of the noncompete agreement.


These arrangements are also sometimes called “covenants not to compete” or “noncompete covenants.” Whatever they may be called, noncompete agreements have tax implications. Read this article to learn what you need to know.


How to Make Tax-Smart Purchase Price Allocations for a Deal That Includes Noncompete Payments


Buyer’s Perspective


As the buyer, you or your business entity must amortize amounts allocated to noncompete agreements over ... Log in to view full article.

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