Owner's Equity in TurboTax Home and Business

Forum|Forum|1 year ago
March 12, 2025
1 reply
0 views

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?

TurboTax Home & Biz Windows

Best answer by Vanessa A

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.

Vanessa AAnswer

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

MxVRacerAuthor

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

VictoriaD75

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

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"