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Essentially, one shareholder would be purchasing the shares of the other shareholder for $50,000. For the selling shareholder there is no gain or loss on the sale. From the buying shareholder perspective, his or her basis would increase by $50,000. So their basis in the corporation's stock would now be $100,000.
It sounds like it is a good deal for the shareholder that is selling.
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Sorry I posted that in error. I meant to copy and paste this to another question.