The lawyer performed a "closing" and the a "purchase price allocation" document signed by the buyers and sellers reflected the apportionment of the sale price as agreed between the parties. The parties are completing their own respective matching 8594s as required. The only place for the value received for transferring the lease (valuable retail location) is the Class VI & Class VII " "bucket".
The question is how are those 2 pieces of revenue (non-compete and Lease transfer proceeds) treated and where are they entered on the 1065/1040? I suspect 4797 but I cannot see how and where. Neither one of course has a cost basis.
I corrected the title of the post as I had inadvertently listed Goodwill instead of Non-Compete.
