How to report money provided by the owner to the corporation

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Hello,

I am not really an accountant so this question might be obvious to a lot of you.

How do you report money send from the owner of the corporation to the corporation itself?
Can the owner do this even 2 years after the corporation has been formed and how do we account that?

The corporation is has only one owner ( 100% ) and one director.

Thank you
 

kirby

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You need to ask him if he is making a loan to the company or investing more equity
 
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Hello,

I am not really an accountant so this question might be obvious to a lot of you.

How do you report money send from the owner of the corporation to the corporation itself?
Can the owner do this even 2 years after the corporation has been formed and how do we account that?

The corporation is has only one owner ( 100% ) and one director.

Thank you
If the transfer is to equity, it would be reported as a shareholder contribution to the owner's capital account. If the transfer is intended as a shareholder loan, you must establish a shareholder loan payable account, and treat it as a loan. This means you should keep records to document the terms of the loan, using a promissory note. You must also charge imputed interest at the applicable minimum IRS rate. Beware though, that with the imposition of the Affordable Care Act, the interest would be considered net investment income on the shareholder's personal tax return, and may be subjec to an additional 3.8% tax if the shareholder's MAGI exceeds $250,000.
 

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