S corp client had two equal shareholders (A & B). On 7/5/2024, A purchased B's membership interest for $340k making A the sole shareholder.
Would the $340k go on A's Form 7203 as "Basis from any capital contributions made or additional stock acquired"? I know it's a silly question but I want to confirm before I give A all of that additional basis since it would allow him to take a loss from the business and avoid a gain on excess distributions.
