At the end of 2022 a dual member LLC (Husband and Wife) sold business fixtures and received money for signing a non-compete agreement and also for transferring an existing lease over to the buyer. The business closed before 12/31 so the couple are filing their last 1065.
The LLC was not sold and neither was the business itself. Purely fixtures plus the lease and of course the entering into of a non compete agreement.
The closing/paperwork was done correctly by lawyers and the proceeds have been apportioned by mutual agreement on the 8594 under class V (Fixtures), and Class VI & VII (Non Compete and Transfer of Lease).
I understand the round sum amount for the sale of the fixtures needs to be apportioned across the individual assets on the 1065.
My question is where are the proceeds for the other 2 classes of sale reported on the 1065 as the 8594 does not feed anything. The business has no balance sheet. The business reports on a cash basis and of course the K1 figures are duly entered on their joint 1040.
Appreciate any guidance.
