I have a new client. She sold her 50% interest of the LLC (S Corp) for $110,000 in 2016. She gave me the "Membership Interest Sale Agreement" and a list of payments she has received in 2016. The payments received in 2016 has added up to $10,000. She has a K-1 from this with the only figure on it is in box 1 of $8,500. The K-1 is not marked final.

How do I report this? What more information is needed? The K-1 was prepared out of state...my new client moved here from there (a State with no income tax).

Any help would be appreciated.

Thank You!!