ErnieS0
Expert Alumni

Self employed

Generally, yes. Your cash contributions to the LLC would be reported as partner capital.

 

For property, your capital contribution is the adjusted basis. You don’t say whether you purchased a property and contributed it immediately into your LLC or whether this is an existing property owned by one or more of the members — and whether there was a mortgage or appreciation or decrease in value from the date of purchase.

 

See 26 CFR § 1.722-1 - Basis of contributing partner's interest for examples.

If the property gained or lost value prior to contribution, an adjustment may also be necessary. 

 

See Allocations to account for built-in gain or loss for additional examples.

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