If I receive a cash buyout in 2018 as a departing LLC partner at the end of 2017, how do I report the income? I did not receive a K-1 for this received income.

[helenstarlight]

I was one of three partners in a LLC speech pathology practice.  I left the business practice at the end of t2017, and received at the beginning of 2018 a cash payment for 1/3 of the partnership's cash reserves, as a negotiated one-time payment.   I didn't receive a K-1 associated this payment, but a confirmation letter. How do I report this cash payment?

[LudwigVan_fan]

Sale of an interest in an LLC treated for taxation purposes as a partnership, is treated as the sale of a partnership interest.  A partnership interest is a capital asset.  You would treat the payment as proceeds from a capital asset, and subtract your basis.  This would appear on Sch D for the most part.  However, if present, certain items would be treated as ordinary income, not capital gains.

However, there are complicating factors in the sale of a partnership interest.

This is a link to a "taxmap" from IRS.

https://taxmap.irs.gov/taxmap/pubs/p541-007.htm

This is a link to Pub 541.  Scroll down to disposition of a partner's interest for more complete information

https://www.irs.gov/publications/p541