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Robstorch
New Member

Paid the Bills - Additional Paid in Capital

We have a small S corp, that because of the business climate struggled the last year. We were short on paying bills and we put our own money in to cover bills and expenses. Let's say there are 2 shareholders and we together put in 15$k. Is that marked in the Balance sheet? and anyplace else? I saw people mention on K-1 but section 12 is for deductions. I could use some help on getting balance sheet right for the state and just getting the money in the right place and any deductions or issues resolved,

 

Thank you for any help.

 

 

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2 Replies
M-MTax
Level 10

Paid the Bills - Additional Paid in Capital

Increase APIC and also cash on your balance sheet and of course the cash would be depleted when it is used to pay expenses.

Paid the Bills - Additional Paid in Capital

In addition, this infusion of capital increases your basis in the S corporation stock; which hopefully you are tracking.

*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
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