Thank you very much for your input! 

There was a specified buy/sell agreement - all fine and good - here's where I go off the rails a little bit:

She is effectively disposing of this business. Had this been a sale of her stake in an S Corp, for instance, her basis in the S Corp would normally be her cost basis for the asset that she sold.

In this particular transaction, as of now I am not inclined to calculate any cost basis. On the tangible goods side, she has absolutely no basis whatsoever. For the remainder of the value of the business she sold, even if she did have capital on the balance sheet in the LLC, she did not sell the LLC - she sold her clientele, noncompete, etc... no cost basis?

That's my thought process, and in an effort to keep in reporting compliance and also not have my client miss out on the tax advantages of a potential for cost basis, I wanted to see what anyone else's take was.

Thank you again!