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Where to Put Contributions from Shareholders on 1120-S?

jeffreyeng
Level 3

Hi,

Does anyone know where to put contributions from shareholders on the Form 1120-S?

 

 

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1 Solution

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abctax55
Level 15

APIC?

SH Loan?

"*******Tax software is no substitute for a professional tax preparer*******
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8 Comments 8
IRonMaN
Level 15

Those would go on the balance sheet and on the shareholders' basis schedules.


Slava Ukraini!
abctax55
Level 15

APIC?

SH Loan?

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
jeffreyeng
Level 3

Do you think it's appropriate for capital contributions to be put under capital stock? Weird that the IRS doesn't provide instructions for this as its common for shareholders to contribute money into their S-Corps, especially when the S-Corps are incorporated.

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IRonMaN
Level 15

Were they issued more stock for the money or did they just pay in additional capital?


Slava Ukraini!
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qbteachmt
Level 15

"Weird that the IRS doesn't provide instructions for this"

There are accounting standards for this, though. Are you reading the questions and going to be providing answers? You were asked:

"APIC?

SH Loan?"

"Do you think it's appropriate for capital contributions to be put under capital stock?"

Do you? You were asked:

"Were they issued more stock for the money or did they just pay in additional capital?"

More details always matter.

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jeffreyeng
Level 3

No additional stocks were issued. Just that the shareholders contributed more money to fund the S-Corp.

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IRonMaN
Level 15

That's called additional paid in capital.


Slava Ukraini!
abctax55
Level 15

APIC may/or may not be allowed per state law.

And the IRS 'has' addressed this - see the basis computations/analysis and the relatively new Form 7203 reporting at the F.1040 level.

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"