s corporation tax return. My client is the seller. Attorney gave me a copy of the purchase and sale agreement. Which states "purchase price" for assets and non-compete agreement is 300,000 of which 50,000 shall be allcoated to the covenant not to compete over 5 years with the balance allocated to customer lists and goodwill. I will prepare the s corp return but the personal return will be prepared by another accountant. The two accountants one being me do not agree on what tax return to report the covenant not to compete income (s corp or 1040) and in what year it is reported. Could anyone out there help.