Last year I received some shares of a private company (startup) as part of a cooperation agreement. I already determined that despite being non-cash (and despite not being traded in the free market and it is not easy to convert them into cash) I need to enter their FMV as non-capital-gain income (for the year they were received).
But where do these go in Schedule C?
Line 1 (Gross receipts or sales) ? Line 6 (Other income)? Something else?
Thanks, Greg
Since you indicate/suggest that you are already a proprietor, If said shares were received as compensation for work you did in connection with the startup, e.g. an accountant/lawyer assisting with business formation, then it's line 1 only.
But if not for services rendered, just what the heck do you mean by "cooperation agreement"?
ChEAr$, Harlan Lunsford, EA n LA
Correct.
Work that I did but mostly work that I *will* do in the next 3 years...
Is it still line 1?
Services rendered and services that *will* be rendered. In the future.
If I am not mistaken, there is an IRS term called "good will". I wonder if this is the case here.
Still line 1?
Or line 6?
Thanks, Greg
Line 1.
ChEAr$, Harlan Lunsford, EA n LA
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.