Investor Contribution, will it be considered income on a K-1?

@joda2023 

Contributions are not considered income and are, therefore, not taxable. Contributions are listed on a partnership (Form 1065) Schedule K-1, but they are not listed on an S-corp (Form 1120-S) Schedule K-1. 

What’s confusing is when we do our taxes the cash in the bank account is an asset, no? Wouldn’t that be taxed then?

Also if it’s on a partnership return k1, it’s not taxed?

Thanks so much for you help with this. It’s really appreciated. 

What’s confusing is the cash is in thank, isn’t it an asset and taxed?  

aIf the contribution is on the partnership k-1, that’s not taxed right?

thanks so much for your help!  Very much appreciated!

@joda2023 

It is not taxed.  Income is taxed, not assets.  The money coming from an investor is not income that the business generated.  If you went to the bank and got a loan, that money is now in your bank account but it is not taxable income.  The same thing in this case, except instead of having a loan payable to the bank, that cash is recorded as partner equity, and, at some point, the partnership owes that money to the partner, similar to a bank loan.