Point of clarification for a 3-member LLC here (33/33/33). If there are no hot assets, no liabilities, just cash in the bank...and two remaining members buyout the third member's interest, what tax doc do we report that "sale" on for the seller? A 1099? My understanding is this would NOT be reported on the sellers final K-1. Working hard to find a FT CPA for us, but looking for some clarity to aid me in communications with the partners. Thanks, and advice appreciated.
