S Corporation - Owners Investment

Forum|Forum|6 years ago
June 3, 2019
3 replies
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Hey there, this is my first year filing an S Corporation.

I am curious as to how I should (properly) report a $1,000 owners investment? Also, is this deductible?

Thanks!

TurboTax Business Windows

PatriciaV

Employee

A contribution by the owner of an S-Corp is generally recorded as an increase in Member's Capital. It is not taxable income or a deduction. The accounting entry is an increase (debit) in Cash (Asset) and an increase (credit) in Capital (Equity).

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fline789

I'm only owner in my Scorp. I purchased a vehicle in May 2017 using my 100% cash. How to record on the balance sheet? Debit Equipment (with less accumulated depreciation) and credit Capital Stock? Is this correct? Any comment would be greatly appreciated.

Mikeblum89

The car is fully depreciated. When we added it to business was a debit to fixed assets and a credit to apic .. we sold the vehicle. I’d there any change to apic ? On the sale we debited cash and credited gain on sale

AliciaP1

No, no change in APIC, because the vehicle is an asset of the business, the gain from the sale will push through to the shareholders appropriately on the Schedule K-1s.

@Mikeblum89

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Mikeblum89

Would there ever be a case where the APIC would be reduced? Obviously we aren't re purchasing shares etc.

BrittanyS

If you are not repurchasing shares then the answer is no. When new shares are issued for preferred or common shares, the paid-in capital is increased and when shares are repurchased the Paid-in capital is reduced.

@Mikeblum89

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