AliciaP1
Expert Alumni

Get your taxes done using TurboTax

Since your business acquisition was shares of an S-Corp you have obtained a loan to purchase stock.  The link I provided explains how the stock basis is increased due to the loan costs you incurred, except for the interest expense.  You can compare it to having a mortgage - the interest is deductible each year but closing costs are not.

 

@FLAsun 

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