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Apartment House LLC and Balance Sheet questions from TurboTax Business

I manage an LLC that purchased an apartment house. We have 5 owners of the LLC.

We purchased the house for $275,000.
We have a bank mortgage of $220,000
Shareholder #1 (Dad) put down $55,000 to get the bank mortgage.

Shareholder # 1 (Dad) spent $36K in repairs and $10K in general expenses for a total of $46K to fix the house up to get it rented.
Shareholder #1 (Dad) considers the $101k ($55K + $46K) as loans to the LLC
Shareholder #2 (Son1) put $10K into the LLC as a loan.

Since these are loans to the LLC it does not change the ownership % of the 5 owners. Ownership is 35% (Dad), 10% (Son1), 10% (Son2), 10% (Son3), 35% (Mom).

On TurboTax Business under Balance Sheet I claim Total Amount of mortgages, notes or bonds to be due in more than 1 year as = $331,000 = bank mortgage ($220K) PLUS shareholder loans ($111K).

Under Other Liabilities I show each of these notes
Bank = $220K
Shareholder 1 = $101K
Shareholder 2 = $10K
For the total $331K

Next page is Capital Stock
Enter the balance of the Corps Capital Stock accounts at the end of the year = ?
What is this ?
Someplace someone wrote that Capital Stock is the number of shares times the par value = What is par value (stated) ? How do I determine that ? The purchase price ?

Next it asks What was the amount of any additional paid-in capital = but this appears to be money given by shareholders for additional equity = in my case, we consider the money as loans since we are not asking for additional equity. Is that correct ?

Can anyone help explains these to me ?
The "Explain This" shown for each of these is meaningless to me.

Thank you,
KV

2 Replies
Level 3

Apartment House LLC and Balance Sheet questions from TurboTax Business

"What is this"......"explain this to me"....."what"....."what".......what you need is an accountant and tax pro to do the tax return for your llc. You're in way over your head.

Expert Alumni

Apartment House LLC and Balance Sheet questions from TurboTax Business

For most businesses people issue stock as $1 par value and according to the percentage of ownership each partner has in the business.  This is something you determine when you start a company.  The par value of the stock issued can be any amount that you would like it to be since it is a privately held company.

 

You may not have Additional Paid in Capital if you are calling the money the partners put in as a loan to the company.  If  you are going to classify the money from the partners as loan you should have documentation showing that it is a loan and the terms of the loan being repaid along with a stated interest rate.

 

@kerryvan

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