Owner contributed equipment to Scorp

An Scorp sole owner contributed a computer to his Scorp. It was not in exchange for stocks. Where does the value of the computer show up on the Schedule L?

I am thinking additional paid in capital but also have doubt since no additional stocks was issued for the computer.

Yes. APIC. Have you considered what basis will be to the corporation?

And holding period, too.

Yes. APIC. Have you considered what basis will be to the corporation?

It is a used computer. I am going to use the adjusted basis. Let's say the original cost was $500 and the owner has claimed $200 depreciation out of it (when he used the computer in another business), I would use $300 as the tax basis for the computer when it was contributed to the Scorp. Any problem with it?

Any problem with it?

I don’t know…does the value matter???

I'd bet Jeff-Ohio does know, despite his saying he doesn't. I'd also bet he's at least passingly familiar with the section that answers the basis question. Its number is 362.

And for good measure, let's walk through an example.

Cost basis to owner before capital contribution is $500.
Adjusted basis before capital contribution is $300.
FMV of computer at time of capital contribution is $100.
Add this assumed fact: S corp. sells the computer one month later for $150.
Now change to this assumption: S corp sells computer one month later for $50.
For simplification, don't worry about whether depreciation is or even can be claimed for the month S corp. owned computer.
What is tax gain or loss amount and nature, and while we are at it, answer Spell's question.