capital contribution

noun

Legal Definition of 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.

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“Capital contribution.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/capital%20contribution. Accessed 27 Nov. 2020.

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