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Hi, my name is Mark. I will be happy to help you with your questions. It would be the same result if the buyer agreed to assume some of the liabilities. Being relieved of liabilities is the essentially the same as receiving the additional cash.
If the majority of the gain is a Capital gain, the members are receiving a tax preferred tax rate.
Is the LLC being treated as a S-Corporation?
How is the LLC being treated as a partnership or as an S-Corporation?