USA Technical Termination


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My clients (LLC taxed as a Partnership) sold their business in 2017 and I am preparing the final return (using the 2016 forms). This would be a technical termination as they sold the entire interest and the new owners will take over the business. Also, the sale was primarily for Goodwill but via an installment sale method. I am wondering how to report this for taxes. What I am planning on doing is just prepare the final 2017 return (using 2016 forms), check the Technical Termination box, but then do not report anything on the LLC for the sale. I will then report the sale of the Goodwill on each of the three partner's personal tax returns via Form 6252. Does this sound right? Thank you!
 

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