Finance
Capital contribution
A capital contribution is money or property an owner transfers to their company in exchange for or in support of an ownership interest. Contributions increase the owner's basis and are not income to the company or a deduction for the owner.
In plain terms: Money you put into your own company.
Why it matters
Frequently mis-recorded as revenue, which inflates reported income and confuses everything downstream. For foreign-owned single-member LLCs each contribution is also reportable on Form 5472.
Read the full guideBookkeeping