Owner's Equity in TurboTax Home and Business

[MxVRacer]

As a sole proprietor, I invested my own money in the business. I think that should be included as owner's equity, but I cannot find where to enter it in TurboTax Home and Business?

[Vanessa A · Accepted solution]

As a sole proprietor, there is not an owners equity category for taxes.  Basically, the sole proprietor only reports income and expenses on Schedule C as all money invested is treated as an expense or asset for the owner and all income received is treated as the owners income whether or not they withdraw it.  You basically are the business so you are basically investing in  yourself.  

[MxVRacer]

So, I don't show the money that I put into the business any where in TT?

[VictoriaD75 · Accepted solution]

No. Owner's equity invested in a sole proprietorship is a balance sheet transaction. There is no need to report the balance sheet on a Schedule C. Only income and expenses are reported. You cannot expense the amount invested in your company. However, if the cash invested were then used to pay for business expenses or buy assets, it would reflect in the expenses as such or as depreciation of the assets. 

@MxVRacer