Non-Capital Contributions Definition | Law Insider (2024)

  • Capital Contributions means, with respect to any Member, the amount of money (US Dollars) and the initial Gross Asset Value of any assets or property (other than money) contributed by the Member (or such Member’s predecessor in interest) to the Company (net of liabilities secured by such contributed property that the Company is considered to assume or take subject to under Code Section 752) with respect to the Units in the Company held or purchased by such Member, including additional Capital Contributions.

  • Additional Capital Contributions shall have the meaning set forth in Section 5.3.

  • Initial Capital Contributions has the meaning set forth in Section 3.01.

  • Unreturned Capital Contributions means all Capital Contributions made by a Class A Member less any returned capital.

  • Initial Capital Contribution has the meaning set forth in Section 4.1.

  • Additional Capital Contribution has the meaning set forth in Section 3.02.

  • Capital Contribution means any cash, cash equivalents or the Net Agreed Value of Contributed Property that a Partner contributes to the Partnership.

  • Additional contributions means contributions made by a member of a defined benefit plan to

  • Cash contributions means the re- cipient’s cash outlay, including the outlay of money contributed to the re- cipient by third parties.

  • Initial Contribution means that contribution each Participant has made or agrees to make pursuant to Section 5.1 of the Agreement.

  • Catch-Up Contributions means Salary Reduction Contributions made to the Plan that are in excess of an otherwise applicable Plan limit and that are made by Participants who are Age 50 or over by the end of their taxable years. An “otherwise applicable Plan limit” is a limit in the Plan that applies to Salary Reduction Contributions without regard to Catch-up Contributions, such as the limits on Annual Additions, the dollar limitation on Salary Reduction Contributions under Code Section 402(g) (not counting Catch-up Contributions) and the limit imposed by the Actual Deferral Percentage (ADP) test under Code Section 401(k)(3). Catch-up Contributions for a Participant for a taxable year may not exceed the dollar limit on Catch-up Contributions under Code Section 414(v)(2)(B)(i) for the taxable year. The dollar limit on Catch-up Contributions under Code Section 414(v)(2)(B)(i) is $1,000 for taxable years beginning in 2002, increasing by $1,000 for each year thereafter up to $5,000 for taxable years beginning in 2006 and later years. After 2006, the $5,000 limit will be adjusted by the Secretary of the Treasury for cost-of-living increases under Code Section 414(v)(2)(C). Any such adjustments will be in multiples of $500.

  • In-kind contributions means services and goods as approved by the department that are provided by a grant recipient toward completion of a department-approved local snowmobile program under section 82107.

  • Equity Contributions means the equity to be contributed by the Equity Investor to Borrower, in accordance with and subject to the terms of the Partnership Agreement.

  • Contribution Date has the meaning set forth in Section 4.3 hereof.

  • Additional Contribution Each Member's pro-rata portion of a Required Amount, determined by multiplying the Required Amount by each Member's Interest.

  • Contributions means the payroll deductions and other additional payments specifically provided for in the Offering that a Participant contributes to fund the exercise of a Purchase Right. A Participant may make additional payments into his or her account if specifically provided for in the Offering, and then only if the Participant has not already had the maximum permitted amount withheld during the Offering through payroll deductions.

  • Contribution Amount has the meaning given in subsection 444-90(1A) in Schedule 1 of the Australian Taxation Administration Act 1953 (Cth).

  • Cash Contribution refers to a direct payment of Contribution in Canadian currency.

  • Cash Contribution Amount means the aggregate amount of cash contributions made to the capital of the Issuer or any Guarantor described in the definition of “Contribution Indebtedness.”

  • Capital Commitment means, for any Borrower, the capital commitment of its Investors in the amount set forth in the applicable Subscription Agreements; “Capital Commitments” means all such Capital Commitments, collectively.

  • Economic Capital Account Balances has the meaning set forth in Section 5.01(g) hereof.

  • Contribution Amounts the aggregate amount of capital contributions applied by the Borrower to permit the Incurrence of Contribution Indebtedness pursuant to Subsection 8.1(b)(xi).

  • Class B Invested Amount means, on any date of determination, an amount equal to (a) the Class B Initial Invested Amount, minus (b) the aggregate amount of principal payments made to the Class B Certificateholders prior to such date, minus (c) the aggregate amount of Class B Investor Charge-Offs for all prior Distribution Dates, minus (d) the amount of Reallocated Principal Collections allocated on all prior Distribution Dates pursuant to subsection 4.08(a) (excluding any Reallocated Principal Collections that have resulted in a reduction in the Collateral Invested Amount pursuant to Section 4.08), minus (e) an amount equal to the amount by which the Class B Invested Amount has been reduced on all prior Distribution Dates pursuant to subsection 4.06(a) and plus (f) the amount of Excess Spread and Excess Finance Charge Collections allocated and available on all prior Distribution Dates pursuant to subsection 4.07(e) for the purpose of reimbursing amounts deducted pursuant to the foregoing clauses (c), (d) and (e); provided, however, that the Class B Invested Amount may not be reduced below zero.

  • Economic Capital Account Balance has the meaning provided in Section 5.1(e) hereof.

  • Financial Contribution means a contribution from an implementing partner in the form of own risk-taking capacity that is provided on a pari passu basis with the EU guarantee or in another form that allows an efficient implementation of the InvestEU Programme while ensuring appropriate alignment of interest;

  • Payments in lieu of contributions means the money payments to

  • Non-Capital Contributions Definition | Law Insider (2024)

    FAQs

    Non-Capital Contributions Definition | Law Insider? ›

    non-capital contribution means a payment or provision in kind made, or to be made, by a user in respect of any non-capital costs (or forecast non-capital costs) of required work.

    What is the definition of capital contribution? ›

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

    What is the capital contribution clause? ›

    One of the most important sections in the operating agreement is the capital contribution section. A capital contribution section usually addresses what happens if members fail to contribute their portion of the initial start-up capital.

    What is the no additional capital contribution clause? ›

    No Member shall be obligated to make any additional Capital Contributions or provide any additional funding to the Company (whether in the form of loans, repayments of loans or otherwise).

    What is 26 CFR 1.118 1 contributions to the capital of a corporation? ›

    § 1.118-1 Contributions to the capital of a corporation. In the case of a corporation, section 118 provides an exclusion from gross income with respect to any contribution of money or property to the capital of the taxpayer.

    What is an example of a non cash capital contribution? ›

    For example, an owner might take out a loan and use the proceeds to make a capital contribution to the company. Businesses can also receive capital contributions in the form of non-cash assets such as buildings and equipment. These scenarios are all types of capital contributions and increase owners' equity.

    What is capital contribution in a law firm? ›

    Cash or assets given to an entity in exchange for an equity interest or as part of an ongoing obligation, or capital commitment, to fund the entity. For example, a capital contribution is often made in exchange for additional common stock, partnership interests or limited liability company interests of an entity.

    What are examples of capital contributions? ›

    Capital Contributions

    A capital contribution is essentially an injection of cash into a company. For example, business owners will often take out some type of business loan from a lender or financial institution and then use the proceeds to make a capital contribution back to their company.

    Is a capital contribution an asset or liability? ›

    Contributed capital is an asset because it represents the resources that a company has received from its shareholders. The amount of contributed capital can be found on a company's balance sheet.

    Does capital contribution have to be money? ›

    If your capital contribution will be in the form of cash, making the contribution is generally as easy as making out a check from your personal funds to the LLC. Capital contributions, however, also can be in the form of property or services.

    What does no capital contribution mean? ›

    non-capital contribution means a payment or provision in kind made, or to be made, by a user in respect of any non-capital costs (or forecast non-capital costs) of required work.

    Can a non member make a capital contribution? ›

    An initial capital contribution is commonly seen as being given in exchange for membership in an LLC. However, while not typical, a person could contribute something to a company without being given membership, and a person could also be given membership without making any contribution.

    What are non shareholder contributions to capital? ›

    In that case, the Court set forth the following five characteristics of a nonshareholder contribution to capital: (1) the contribution must become a permanent part of transferee's working capital structure; (2) the contribution may not be compensation, such as a direct payment for a specific, quantifiable service ...

    How do you classify capital contributions? ›

    Contributed capital will be reflected in the stockholders' equity section of the company's balance sheet. Still, it will be split into two different accounts: Common or preferred stock, and additional paid-in capital (sometimes abbreviated as APIC).

    What is Section 351 contribution to capital? ›

    A corporation can receive tax-free contributions to capital by shareholders and nonshareholders. If the contribution is made by a shareholder, the corporation takes the shareholder's basis in the property. The corporation's basis in property contributed by nonshareholder is zero.

    What are capital contributions to an S Corp? ›

    Capital contributions can come as cash or property transferred to the S Corporation. Adjusted basis is the result of the shareholder's initial basis after increasing and decreasing it by their share of the S Corporation's income, loss, and other certain items.

    What should I put for capital contribution? ›

    The most common capital contribution is cash, but you can also contribute property, such as office space, vehicles, and equipment. It's also possible to contribute services to an LLC.

    What is the difference between contribution and capital contribution? ›

    Business Law

    Capital contributions are not considered business income unless given in the form of a loan. Contribution may also refer to a charitable contribution, which is money or assets given to a corporation organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes.

    How are capital contributions calculated? ›

    This formula (contributed capital = common stock + additional paid-in capital) encapsulates the essence of shareholder investment, merging the foundational elements of common stock and additional paid-in capital into a comprehensive measure of financial support investors provide.

    How do you calculate capital contribution? ›

    Contributed Capital Formula

    It is calculated by subtracting retained earnings from total equity. read more is the par value of issued shares. The common stock of the company appears on its balance sheet below as common stock and preferred stock.

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