What EXACTLY was sold?  

1. Did the shareholder sell the corporate stock?
2. Did the corporation sell its assets?  If so, what kind of assets?
3. Something else?

Hello, 

Looking at the settlement statement from the lawyer I would say it was the assets of this business that were sold.  They bought the name and all of the assets, which were those of a take out restaurant.  Do I show the sale of each asset?  Then this will show a capital gain or loss on the K1? 

Sch D and/or F 4797, depending on the answers to Bill's (excellent) questions.

And yep, basis should be considered unless you want to really short-change your client.