I am using Turbo Tax Business for the first time and filling out our "Partner/Member Information". What number it it looking for under "Cash member contributed to LLC"? Does it mean the money used from a HELOC to fund the purchase of the home and the remodeling? Does it include anything else?
Thank you for your help
Michele
The figure is the amount of actual cash you are contributing to the LLC (other members are likely contributing to the LLC's capital as well). For example, if you took out a personal loan and are contributing the proceeds to the LLC, that would be a contribution of cash to the LLC.
An LLC member can also contribute property to the LLC which will generally require an input for the value of the property as the contribution to capital.
If you are unfamiliar with these terms and/or do not have a basic knowledge of pass-through entities and/or accounting for such entities, you should seek guidance from a tax and/or legal professional.
The figure is the amount of actual cash you are contributing to the LLC (other members are likely contributing to the LLC's capital as well). For example, if you took out a personal loan and are contributing the proceeds to the LLC, that would be a contribution of cash to the LLC.
An LLC member can also contribute property to the LLC which will generally require an input for the value of the property as the contribution to capital.
If you are unfamiliar with these terms and/or do not have a basic knowledge of pass-through entities and/or accounting for such entities, you should seek guidance from a tax and/or legal professional.
Thank you @Anonymous_ for responding so quickly! I do understand the terms you are using but it is our first year filing with LLCs.
So the LLCs are split 50/50 between my husband and I. Do we just split the amount we used through our HELOC for those numbers for each of our profiles? I'm just not sure where this number works in for K1 and 1040s!
Thank you again
Since you are both on the note (the loan), you can each contribute 50% to the LLC.
In TurboTax Business, you would enter the contribution in the Partner/Member Information section of the program under your capital accounts.