I need help in recording leaving partners gain. 

Here is the situation, Me and my brother open the business back in 2008. Our friend (new partner) joined us in 2015 with $71K investment and got 33% share in the business. He left us last year. Based on valuation increase we gave him 117K back. Now where should I disclose this capital gain in his K1 so that # 1 we will pay capital gain on $46K and #2 in future we when we will sell the business later on we don't have to pay 100% capital gain on our side (2 left over partners)

Thanks