Reporting Capital Contributions & Distributions on Form 5472
When you invest money into your LLC or take distributions from it, these transactions must be reported on Form 5472.
What Are Capital Contributions?
Capital contributions are funds or property you invest into your LLC. For foreign-owned LLCs, these are considered "reportable transactions" between you (a foreign person) and the LLC.
Examples of Capital Contributions
- Initial investment when forming the LLC
- Additional cash deposits to fund operations
- Transfer of equipment or property to the LLC
- Paying LLC expenses from personal funds
What Are Distributions?
Distributions are withdrawals of money or property from your LLC to yourself. Any transfer of value from the LLC to a foreign owner is a reportable transaction.
Examples of Distributions
- Transferring profits to your personal account
- Using LLC funds for personal expenses
- Taking LLC property for personal use
- Salary or draws if treated as distributions
How to Report on Form 5472
Capital contributions and distributions are reported in Part V of Form 5472, which covers monetary transactions between the LLC and foreign related parties.
Part V, Line 15(a)
Capital contributions received from foreign owner: Report the total amount of capital you contributed to the LLC during the tax year.
Part V, Line 16(a)
Distributions to foreign owner: Report the total amount of distributions you received from the LLC during the tax year.
Documentation Required
Keep records of all capital contributions and distributions, including bank statements, wire transfer confirmations, and any documentation showing the date and amount of each transaction. The IRS may request this documentation during an examination.
Frequently Asked Questions
Are capital contributions reportable on Form 5472?
Yes. Capital contributions from a foreign owner to a US LLC are reportable transactions that must be disclosed on Form 5472.
Do I report distributions to myself on Form 5472?
Yes. Any distributions from your US LLC to you as a foreign owner must be reported on Form 5472, regardless of the amount.
What if I contributed and withdrew the same amount?
Both transactions must be reported separately. You cannot net contributions against distributions—each must be disclosed in its respective line item.
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