Beginning capital refers to the initial amount of money or assets invested in a business or partnership at the start of a fiscal year. This includes:
- Previous year's ending capital: The closing balance of the capital account from the previous year.
- Capital contributions: Any money, property, or services invested into the business during the year.
- Prior-year income and expense allocations: Net income or losses from previous years that affect retained earnings or accumulated deficits.
Is there anything specific you need clarification on regarding beginning capital if so, reach back out.
Here is some additional information to help you complete your filing in TurboTax:
To add beginning capital in TurboTax Business for partners/members follow these steps:
- Open TurboTax and navigate to your tax return.
- Go to the Business Info section.
- Select Partner/Member Information.
- Edit a member: You can then enter the capital contributions made by LLC member
For more detailed information, you can refer to IRS Publication 541 and Accounting Insights
[Edited 03/16/2025|09:02 am, PST] @hoses
