capital contribution

noun

: a contribution of funds or property to the capital of a business by a partner, owner, or shareholder

Note: Under the Internal Revenue Code, a capital contribution is generally excluded from a company's gross income, unless it is a loan from a shareholder that the company is released from repaying.

Dictionary Entries Near capital contribution

Cite this Entry

“Capital contribution.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/capital%20contribution. Accessed 18 Nov. 2024.

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