Self-employment Tax

[BOBMCI]

My client will be recieving income from a five year non-compete agreement resulting from the sale of his businees. Will this income be subject to self-employment taxes?. I "googled" the question that indicated this income was unearned and not subject to SE tax.

[Jiggers]

My client will be recieving income from a five year non-compete agreement resulting from the sale of his businees. Will this income be subject to self-employment taxes?. I "googled" the question that indicated this income was unearned and not subject to SE tax.

Not subject to SE tax. He should receive a 1099MISC with the amount in "Other Income". Goes on line 21 of the 1040.