A single member LLC (elected to be taxed as an S-Corp) is being sold. Assets being sold consist of goodwill, covenant not to compete and customer list. My understanding is that goodwill is considered capital gain and the sale of other intangibles would be taxed as ordinary income. However, I am having a hard time finding specific guidance on this.
Also, the member would like to sell as an installment sale. Is that allowed in this type of situation and what would be the tax consequences?