The ordinary income (Box 1) and the Net Section 1231 gain would be taxable in the year the business earned this income, regardless of how much of that income you received in cash. The Net Section 1231 gain added to your Schedule D as a long term capital gain.
You would have to pay taxes on this gain, as a disregarded entity passes its tax liabilities over to its owners/ partners/ members.
Your capital account doesn't impact your tax return.
