capital contribution


: 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.” Legal Dictionary, Merriam-Webster, Accessed 12 Jul. 2024.

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