S corp capital contribution

[Samsun683]

S corp initial year. Owner contributed cash. On 1120s is this common stock or APIC? Technically no par value stock but not sure if putting entire amount on APIC with 0 as common stock seems accurate. Thoughts appreciate💛

[Mike9241]

Additional Paid-in Capital Formula = (Issue Price – Par Value) x number of shares issued.

so with no par stock all is APIC

[DavidD66]

If your articles of incorporation provide for the number of shares and the par value, you would allocate that amount to "Common Stock".  For example, 100 shares, $1 par - you would allocate $100 to Common Stock, and the rest to Additional Paid in Capital.  If your articles are silent, you can allocate it all to Additional Paid in Capital.

[Samsun683]

Awesome thanks. Does this reflect on m2 or do i track basis myself 

[AliciaP1]

It depends if you're using tax software or manually completing your returns.  Most business tax software, including TurboTax Business, has you enter the information, reports it on M-2, and keeps a Shareholder Basis Calculation Worksheet behind the scenes.  If you are preparing your returns manually, you would want to report the info on the M-2 and keep a basis worksheet for yourself.

@Samsun683