Hello all and thank you for reading! 

The client has a software business set up as an LLC that is filed on schedule C with his 1040.

a while back he took on a partner/investor who made a 300K cash infusion for an equity %in the Company. i think it was 30%

long story short is he has now as of TY 23 bought out the partner for a mutually agreed upon price of 80K for all of the 30% back.

The business has been showing major losses for a while and for the first time in 2023 it had income although still a loss over all. he was audited by NYS for 2022 ( big loss), so i am being cautious with just entering the 80k expense without insight. he has all the receipts for everything so ultimately we are not worried.

my question, what is the correct way/terminology to classify the expense as a single line item on the schedule c. Shall i enter guaranteed payment to partner or partner buyout. or am i completely off.

i have took into consideration the whole idea of the LLC not being filed as a partnership return in case you are wondering. 

need guidance please. 

thank you so much