Reporting Capital Contributions across Forms 5472, 1120 & 1040NR for my Foreign Disregarded Entity LLC

You're dealing with a somewhat complex tax situation, but I can help clarify how to handle capital contributions across these forms for your foreign disregarded entity LLC. For Form 5472, you're on the right track. You should report capital contributions on the separate sheet for Part V, but you also need to include the amount on Part IV - Line 12 "Other amounts received" since this represents money coming into the entity. Make sure to clearly label it as capital contributions. Regarding Form 1120, capital contributions don't appear on the income statement portion but should be reflected on Schedule L (Balance Sheet). Look at Line 22 "Capital stock" or Line 23 "Additional paid-in capital" depending on the nature of your contribution. If you're using tax software, it should automatically populate these areas when you enter the information correctly. For Form 1040NR, you're correct that capital contributions should not be included on Schedule C since they're not business income. As a single-member LLC that's a disregarded entity, your capital contributions don't need to be separately reported on 1040NR at all - they're not income to you personally. The key is maintaining consistent treatment across forms, with proper documentation to show that the same transaction is being handled appropriately according to each form's requirements.

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I dealt with this exact situation last year. For Form 5472, you definitely need to report the capital contribution on both Part V (attached sheet) AND Part IV Line 12. For Form 1120, look at Schedule L on the balance sheet portion. Capital contributions should go on line 22 or 23 depending on your specific situation. For 1040NR with Schedule C, you're right - don't include the capital contribution as income. It doesn't go on Schedule C at all since it's not income or an expense. Just make sure your narrative is consistent across all forms. I included a detailed attachment explaining the capital movement to make it crystal clear for the IRS.

I'm filing the same forms for my foreign LLC and wanted to double check - does anyone know if capital contributions are considered "reportable transactions" for Form 5472 purposes? My CPA is saying one thing but I've read something different online.

Has anyone used TurboTax or H&R Block software for filing these forms for a foreign LLC? I'm trying to figure out if I can DIY this or if I really need to hire a specialist.

I went through this exact same situation with my foreign disregarded entity LLC last year, and it's definitely confusing at first! Here's what I learned after working with a specialist: For **Form 5472**: You're correct that capital contributions go on the separate attachment for Part V, but they also need to be reported on Part IV Line 12 as "Other amounts received." This might seem like double reporting, but it's intentional - Part IV tracks cash flows while Part V provides the detailed breakdown. For **Form 1120**: The capital contribution should appear on Schedule L (Balance Sheet) under owner's equity, not as income. Look for lines related to "Capital stock" or "Additional paid-in capital" - the exact line depends on how your LLC is structured. For **Form 1040NR**: You're absolutely right not to include it on Schedule C. Capital contributions aren't income to you personally, so they don't belong anywhere on your individual return. The key is creating a clear narrative across all forms. I included a detailed statement explaining the capital contribution and referencing it on each form where it appears. This shows the IRS you're being transparent about the financial flows. Don't stress too much - as long as you document everything clearly and consistently, the IRS understands these are complex structures. Focus on transparency rather than perfection.

I just went through this same process a few months ago and completely understand your stress! The interaction between these three forms for foreign disregarded entities is definitely not intuitive. One thing that really helped me was creating a simple spreadsheet tracking where the capital contribution appeared on each form. For Form 5472, I put it on both Part IV Line 12 AND the Part V attachment (yes, it feels like double reporting but it's correct). For Form 1120, it went on Schedule L under owner's equity - not as income anywhere. And for 1040NR, it doesn't appear at all since it's not personal income. The biggest mistake I almost made was overthinking the "consistency" requirement. The forms are designed to capture different aspects of the same transaction, so they're supposed to look different from each other. What matters is that your narrative makes sense and you can clearly explain the flow of money. I'd strongly recommend creating a one-page summary document that explains your capital contribution and references exactly where it appears (or doesn't appear) on each form. Attach this to your filing package. It shows the IRS you understand what you're doing and aren't trying to hide anything. Also, don't be afraid to write brief explanatory notes in the margins of the forms themselves. Something like "See attached capital contribution statement" can go a long way toward preventing confusion down the road. You've got this - the fact that you're being so careful about getting it right shows you're on the right track!

I completely understand your stress about this - I was in the exact same position with my foreign disregarded entity LLC last year! The good news is that once you understand how these forms work together, it's much more manageable than it initially seems. Here's what I learned from working through this (and confirmed with an international tax specialist): **Form 5472**: You're absolutely correct that capital contributions go on the Part V attachment, BUT they also need to be reported on Part IV Line 12 "Other amounts received." This isn't double-counting - Part IV tracks cash flows while Part V provides the detailed breakdown. Make sure to clearly label it as "Capital contribution" on Line 12. **Form 1120**: Capital contributions don't appear in the income section at all since they're not taxable income. Instead, look at Schedule L (the balance sheet). Your capital contribution should be reported under owner's equity - typically Line 22 "Capital stock" or Line 23 "Additional paid-in capital" depending on your LLC's structure. **Form 1040NR**: You're spot-on here - capital contributions should NOT be included on Schedule C or anywhere else on your individual return. They're not personal income to you. The key insight that helped me was understanding that apparent "inconsistencies" between forms are actually by design. Each form captures different aspects of the same transaction for different regulatory purposes. My recommendation: Create a simple one-page statement explaining your capital contribution - the amount, date, and exactly where it appears (or doesn't appear) on each form. Attach this to your filing package and reference it in the margins of each form. This level of documentation shows the IRS you understand what you're doing and aren't trying to hide anything. You're being appropriately careful about getting this right, which puts you ahead of many people who just guess. Take a deep breath - you've got this!

I went through this exact same situation with my foreign disregarded entity LLC about 18 months ago, and I totally get the stress you're feeling! The complexity of coordinating these three forms is definitely overwhelming at first. What really helped me was understanding that the IRS expects these forms to look different from each other - they're designed to capture different regulatory requirements, not to match perfectly. Here's how I handled it: **Form 5472**: Capital contributions go on BOTH Part IV Line 12 ("Other amounts received") AND the separate Part V attachment. I initially thought this was double-reporting, but it's actually required - Part IV tracks cash flows, Part V provides transaction details. **Form 1120**: The capital contribution appears on Schedule L (Balance Sheet) under owner's equity. Don't look for it in the income sections since it's not taxable income. Depending on your software, it might be labeled as "Capital stock," "Additional paid-in capital," or "Owner's equity." **Form 1040NR**: You're absolutely right - capital contributions don't belong on Schedule C or anywhere else on this form. They're not personal income to you as the owner. The game-changer for me was creating a detailed reconciliation document that I attached to my return. It listed the capital contribution amount, date, and specifically noted where it appeared on each form (and why it didn't appear on 1040NR). I also added brief references like "See attached Capital Contribution Statement" in the margins of each form. I filed this way and haven't received any questions from the IRS. The key is being transparent and proactive with documentation rather than trying to make everything look identical across forms. You're asking all the right questions, which shows you're approaching this carefully. That attention to detail will serve you well!