Covenant Not To Compete

Collapse
X
 
  • Time
  • Show
Clear All
new posts
  • DONNA ASTON
    Member
    • Jan 2009
    • 60

    #16
    you are not confused that is the remaining bal is 300,000 less down payment of 60,000

    Comment

    • BOB W
      Senior Member
      • Jun 2005
      • 4061

      #17
      Originally posted by DONNA ASTON
      yes your correct. Thank you I understand the interest must be calculated. I am on the computer and having problems with the 6252 it doesn't look correct.

      If you give me the interest rate you are going to use and the term of the installment period I can generate an amortization schedule to be used showing principle and interest annually. In this case there may be a stated payment amount and I will need that also.
      This post is for discussion purposes only and should be verified with other sources before actual use.

      Many times I post additional info on the post, Click on "message board" for updated content.

      Comment

      • DONNA ASTON
        Member
        • Jan 2009
        • 60

        #18
        Bob

        the 300,000 is on the sale agreement and orginal post

        Comment

        • BOB W
          Senior Member
          • Jun 2005
          • 4061

          #19
          Originally posted by veritas
          confused now. The sales price is $300,000. The contract balance is $240,000? Which means some part of 240,000 will be interest?
          The sale price has to be reduced because a portion of it is interest. The total deal with interest has to equal $300,000 because the interest rate is not stated.
          This post is for discussion purposes only and should be verified with other sources before actual use.

          Many times I post additional info on the post, Click on "message board" for updated content.

          Comment

          • DONNA ASTON
            Member
            • Jan 2009
            • 60

            #20
            Bob

            5% the installment is for 5 years 60,000 per year

            Comment

            • veritas
              Senior Member
              • Dec 2005
              • 3290

              #21
              The note will be for

              Originally posted by BOB W
              The sale price has to be reduced because a portion of it is interest. The total deal with interest has to equal $300,000 because the interest rate is not stated.
              $240,000 with unstated interest? My thinking is that is the amount too look at for computing interest.

              Comment

              • BOB W
                Senior Member
                • Jun 2005
                • 4061

                #22
                Originally posted by veritas
                $240,000 with unstated interest? My thinking is that is the amount too look at for computing interest.
                Yes and No... $30,000 down and $30,000 at the end of the year. The original sale date to the end of the year also involves interest on the second $30,000. ????? What was the sale date?
                This post is for discussion purposes only and should be verified with other sources before actual use.

                Many times I post additional info on the post, Click on "message board" for updated content.

                Comment

                • DONNA ASTON
                  Member
                  • Jan 2009
                  • 60

                  #23
                  i'm totally confused now. My sales price is stated in agreement and again my 6252 and 4797 don't look right. Then I'm looking at the example in THE TAX BOOK and more confused sorry knew this was a pain from beginning that is why the person doing 1040 didn't want it

                  Comment

                  • BOB W
                    Senior Member
                    • Jun 2005
                    • 4061

                    #24
                    Originally posted by DONNA ASTON
                    i'm totally confused now. My sales price is stated in agreement and again my 6252 and 4797 don't look right. Then I'm looking at the example in THE TAX BOOK and more confused sorry knew this was a pain from beginning that is why the person doing 1040 didn't want it
                    Just give me the sale date. Ignor the sale price. For IRS purposes it is not the sale price.
                    Last edited by BOB W; 01-05-2011, 11:41 PM.
                    This post is for discussion purposes only and should be verified with other sources before actual use.

                    Many times I post additional info on the post, Click on "message board" for updated content.

                    Comment

                    • veritas
                      Senior Member
                      • Dec 2005
                      • 3290

                      #25
                      Could be

                      Originally posted by BOB W
                      Yes and No... $30,000 down and $30,000 at the end of the year. The original sale date to the end of the year also involves interest on the second $30,000. ????? What was the sale date?
                      Hard to tell from the facts given.

                      Comment

                      • DONNA ASTON
                        Member
                        • Jan 2009
                        • 60

                        #26
                        sorry my error sale date is Sept 14 and the last 30,000 is due in october.

                        Comment

                        • BOB W
                          Senior Member
                          • Jun 2005
                          • 4061

                          #27
                          Originally posted by DONNA ASTON
                          sorry my error sale date is Sept 14 and the last 30,000 is due in october.
                          Do you know what date it was paid in October?
                          This post is for discussion purposes only and should be verified with other sources before actual use.

                          Many times I post additional info on the post, Click on "message board" for updated content.

                          Comment

                          • DONNA ASTON
                            Member
                            • Jan 2009
                            • 60

                            #28
                            no all I have right now is the agreement and it states in October

                            Comment

                            • BOB W
                              Senior Member
                              • Jun 2005
                              • 4061

                              #29
                              Originally posted by DONNA ASTON
                              no all I have right now is the agreement and it states in October
                              OK> I going to assume it was October 14, 30days after the sale and 60 days for the first $5,000 payment...OK???
                              This post is for discussion purposes only and should be verified with other sources before actual use.

                              Many times I post additional info on the post, Click on "message board" for updated content.

                              Comment

                              • DONNA ASTON
                                Member
                                • Jan 2009
                                • 60

                                #30
                                Bob: I just read further here and the first installment of 60,000 is due October 1st of the next year

                                Comment

                                Working...