Our LLC started in November 2015. Me and my partner invested $7000 each. In 2016 we reported $2888 total net loss. What would be our beg. capital balance for 2017?

[CathiM · Accepted solution]

If you had no other items that affect Partners' capital accounts, the Beg. Capital Balance for 2017 would be $11,112 ($14,000 minus $2,888).  Each partner's beginning basis would be $5,556.  

Make sure you have taken into account all the items that affect basis.

Besides the partner's distributive share of taxable and nontaxable partnership income(loss) they include:

• Additional cash and property contributions
• Distributions of cash and property
• Non deductible partnership expenses 
• An increased or decreased share of, or assumption of, partnership liabilities. 
  
• Depletion of oil and gas.

Click here on this link for more information from IRS Publication 541: https://www.irs.gov/pub/irs-pdf/p541.pdf