Sold my biz. bought my partner out for 50% of stock a year ago. did not pay for my 50% share. whats my basis?

Question

i am trying to figure out my basis. i orginally bought biz and paid for it with companies proceeds. then i took on partner and he paid nothing for shares. years later i bought partner 50% share for 250K. sold biz for 1M. what is my basis? can purchase of partners 50% share determine basis for my other 50% of stock? in otherwords is my basis 500K? or 250K? thanks in advance

Answer 1

You are a business man. Don't you have a CPA for this sort of thing?

Answer 2

250K