Made a personal investment of capital into my LLC. Where do I show this amount?

[samshorrosh]

We poured in a pile of cash into the business throughout the last year. We suffered some losses. Turbo Tax shows the correct amount of the loss and we entered the total of the equity investment, the beginning and ending cash on hand and the remaining unsold inventory, but the balance sheet doesn't/won't balance. What am I missing?

[JulieCo]

Capital contributions made by LLC members will be entered in the Business Info section of TurboTax Business. 

Select the Business Info tab near the top left of the screen.  Then select Partner/Member Information.  You can then select to EDIT a member.  You will be brought through several screens, but should eventually be brought to a Member Capital screen where the beginning and ending capital balances are entered, plus any contributions from or distributions made to the partners.  You will need to edit each member's capital screen individually for each partner. See the sample screenshot attached.

[m4innca]

I understand that the Investment amount will be reported to the LLC in TurboTax Business.  Where does the investor report the personal income Loss on their TurboTax Premier? Does the Loss amount reduce reported Income from Earnings?

[Critter]

The cash influx to the business is NOT reported on a personal income tax return directly... you do not have a personal loss unless the business closes up ... then any unrecovered basis would be captured  ... what is allowed is passed thru on the K-1 form which is why the business return must be completed correctly and the books kept accurately.   Seek local professional assistance if needed to get educated on your situation and to get the books set up correctly. 

[anisal]

I can get to the Edit Members summary section but the next screen is only demographic info and never goes to the capital screen, or any others, you refer to.  Suggestions for how I get there? 

[PatriciaV]

@anisal

Please clarify what version of TurboTax you are using and what type of business return you are preparing (1120, 1120-S, 1065). Is this the first year you have prepared the tax return for this business?

[anisal]

This is the first year.  The form is 1065.  The version is TurboTax Business 2021.  

[anisal]

@PatriciaV This is the first year.  The form is 1065.  The version is TurboTax Business 2021.  

[PatriciaV]

Here is the sequence for Form 1065 under Business Info >> Partner/Member Information:

1. Member Summary page
2. Click Edit beside a Partner Name.
3. Enter Member information.
4. Choose type of member (managing or other).
5. More About This Member, click boxes that apply (optional).
6. Member Percentage, beginning and end of year.
7. Member Capital: cash/property contributions, cash/property distributions.
8. Back to Member Summary.
9. Click Done, and select Allocation Method (typically Profit Percentage).

Because this is the first year of your business, Beginning Capital for all Partners will be zero.

To check your entries, go to Forms mode (upper right in TurboTax header).

Look for Sch K-1 Wks in the left column; click on form name to open in the large window.

Use the scroll bar within the form to review all Partners; Capital appears under the Partner Address on the left side.

Use Step-by-Step to return to the entry pages.

[Cepedaer]

I have the similar question but for an S Corp with a Single Member, first year doing business. I may also perform another capital contribution to the S Corp in upcoming year(s). How do I enter a shareholder capital contribution (cash) in TurboTax for Business? In other words, what is the sequence for Form 1120S? I'm currently using TurboTax for Business 2021 in addition to TurboTax for Home & Business 2021.

[GeorgeM777]

Before discussing the sequence of how to enter information into TurboTax regarding an S-Corp, some background information may be appropriate.  An S-Corp is a tax election.  In other words, someone creates a limited liability company or a domestic corporation and elects to be taxed as an S-Corp.   However, a sole proprietor does not have the option of electing to be taxed as an S-Corp.  

There are generally two ways to get money into an S-Corp – through a capital contribution (equity) or loans (liabilities).  When you first start a return in TurboTax Business, you'll be asked to select the type of return you want to prepare.  Select Business return and then select S corporation to add Form 1120S to your return.  

Here is a link to a TurboTax article regarding S Corps that you might find helpful. 

Do S Corps file Personal Tax Returns

@Cepedaer

[Cepedaer]

Thank you for your response but that does not address my question. Let me clarify-- I do not require any guidance on adding the 1120S form to the business return using Turbo Tax for business 2021. I also do not require any guidance on a company tax election.

What I need to know is where to enter "a capital contribution (equity) or loans (liabilities)" in the Turbo Tax for business 2021 software? The TurboTax interview questionnaire is not providing an opportunity to enter this information. This capital contribution question I would imagine comes up during the Business Info | Shareholder information ... but it does not. 

Please look at @PatriciaV 's response in the thread above.  I'm looking for a similar answer but for the 1120S (S Corp) instead of 1065 (Partnerships). Hopefully that clears things up a bit. Thank you.

[AliciaP1]

Capital contributions or distributions from an S-corp effect the Shareholder's Basis in the stock of the S-corp rather than their direct equity in the business like a partership.

To adjust basis:

1. In forms mode click on Basis Info Wks on the left-hand menu 
   • If you do not see this form click Open Form at the top of the menu and search Basis and choose Stock and Loan basis Info Worksheet and Open Form at the bottom of the pop up screen
2. The worksheet will populate will all your shareholders
3. Input the Stock/loan contributions as needed for each shareholder
4. At the top of the form check the box to Calculate and print shareholder stock and loan basis?
5. Once the worksheet is populated you will see a Basis Stmt show up for each shareholder in the menu on the left that can be sent with each Schedule K-1

@Cepedaer

[Cepedaer]

Actually, it is the opposite. I'm not asking about Capital contributions or distributions from an S-corp but rather to an S-corp. As the only shareholder of this S-corp I contributed cash.  Where can I enter a shareholder capital contribution (cash) to the 1120S (S-corp) using TurboTax for Business 2021?  Thank you,

@AliciaP1

[ZoltanB45]

You will need to get out of "interview" mode and use "forms" to update the contributions.  Go to the Stock and Loan Basis Information Worksheet. There, you will be able to manually enter the amount of capital contributions for each shareholder listed.