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    Capital Contribution

    In 2017 new S Corp. had few expenses and no income, so Retained Earnings were negative.

    The initial capital contribution was posted as common stock and APIC. They do not expect to make a profit for at least another year. How should new capital contribution (to cover basic bills) be treated: (new) Additional Paid-In Capital, Loan from the shareholder, capital contribution for Basis worksheet?

    Many thanks!
    Last edited by Tax Advisors; 03-07-2019, 06:26 PM.

    #2
    Explain the implications of each to your client so client can make an informed decision.

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