Hello. An S-corp with two members has one outgoing member. He leaves on 10/31/23. Each member has a stock basis as of this date of $18251.92. The outgoing member on this date received the title to a business asset with a depreciable value of $16,055.00, a non-cash distribution. In addition, the outgoing member received a distribution check that officially "zeroed out" the outgoing member's equity in the company. 100% of the equity now belonged to the remaining member, and no capital gain or loss on the stock should have been passed to the outgoing member. 

Now, finishing the tax return on this transaction has been a nightmare. Because distributions must be taken equally by both members, I need guidance on how to proceed without throwing Schedule M-2 out of whack. Can anyone help?