USA Partnership Investment (And reflection on tax forms)

[Efed3817]

I and a partner started an LLC last year. So, I know that we're viewed as a partnership by the IRS and have to fill out K-1 (1065). The business didn't involve much capital to start up, but since I had more capital than my partner and really wanted to get it going, I agreed to invest about $2,000 and he didn't put in anything. We are equal owner, however. I was Ok with that situation.

The problem is that I'm having trouble understanding how to interpret that "investment" particular since it all went into "expenses". It's in filling out the K-1 (Form 1065) that I've realized that probably needs to be reflected somewhere, but I'm not sure where or how. Any guidance on how to at least think about this would be appreciated (and if you happen to be a K-1 aficionado, all the better).

Many thanks.

 

[Shcoll]

I and a partner started an LLC last year. So, I know that we're viewed as a partnership by the IRS and have to fill out K-1 (1065). The business didn't involve much capital to start up, but since I had more capital than my partner and really wanted to get it going, I agreed to invest about $2,000 and he didn't put in anything. We are equal owner, however. I was Ok with that situation.

The problem is that I'm having trouble understanding how to interpret that "investment" particular since it all went into "expenses". It's in filling out the K-1 (Form 1065) that I've realized that probably needs to be reflected somewhere, but I'm not sure where or how. Any guidance on how to at least think about this would be appreciated (and if you happen to be a K-1 aficionado, all the better).

Many thanks.

The oraginal Balance Sheet should look like this:
Partnership
Balance Sheet
As of XXX
Asset/Cash $2,000
Capital. $2,000

If the cash is used to pay for startup expense or cost that has future value
It should either be expense or capitalize.
If expenses, K-1 should have $2000 loss and should be allocated on form K-1 according to partnership agreement. If capitalized, Form K-1 should have - 0- for each partner assuming $2,000 is the only transaction.