USA Fully vested stock in lieu of cash for Royalties

[fisheka]

I have a contract for use of my invention (patented) with a privately-held very small start-up corporation. The payments are royalties. In 2018 I received $10k cash payments for the royalties in the first half of the year, but agreed to take $10k in the form of the corporation's stock (fully vested) for the second payment of the year.

1. What should I expect the 1099 MISC from the corporation to look like (what figures in which boxes)?
2. I still have the stock, which has not really had a change in per share value. How do I treat the "in lieu of cash" money on my 1040 Schedule C?

 

[kirby]

For question 1, the 1099 should show 20,000 in box 2 "Royalties".
For 2, before you go there check with a tax pro on whether you should make an IRC 83 b election.

 

[fisheka]

Thank you for your reply.

I believe that the 83b election must be completed within 30 days of accepting/receiving the stock so it's too late for that.