# Form 5472 Part V Explained: Contributions, Distributions and Owner-Paid Expenses

> **Short answer**: Part V applies only to foreign-owned single-member LLCs. It reports transactions with the owner that **aren't already in Part IV** — mainly payments connected with forming the LLC, the owner's **contributions** (including expenses the owner paid for the LLC) and the LLC's **distributions** to the owner. Check the Part V box, attach a statement listing each transaction, and include the amounts on lines 1f and 1h.

## What Part V covers {#what}

Part V is titled *Reportable Transactions of a Reporting Corporation That Is a Foreign-Owned U.S. DE*. The instructions say:

> You must check the box in Part V if you are a foreign-owned DE that had any other transaction, as defined by Regulations section 1.482-1(i)(7), not already entered in Part IV. These transactions include amounts paid or received in connection with the **formation, dissolution, acquisition, and disposition** of the entity, including **contributions to, and distributions from**, the entity. Describe these on an attached statement.

Only foreign-owned U.S. DEs complete Part V; other reporting corporations skip it.

## Common examples {#examples}

| What happened | Goes in | Description to use |
| --- | --- | --- |
| Owner paid the state filing fee with a personal card | Part V · contribution | LLC formation and state filing fees paid by owner |
| Owner paid the registered agent or annual report fee | Part V · contribution | Registered agent fee paid by owner |
| Owner moved money from a personal account into the LLC's account | Part V · contribution | Capital contribution to company bank account |
| Owner paid software, domain or other business costs for the LLC | Part V · contribution | Business expenses paid by owner on behalf of the LLC |
| LLC sent money back to the owner's personal account | Part V · distribution | Distribution to owner |
| Owner **lent** money to the LLC, to be repaid | Part IV · line 17 | Beginning and ending balances |
| LLC **lent** money to the owner | Part IV · line 31 | Beginning and ending balances |
| LLC paid the owner for services or rent | Part IV · line 29 / 27a | By category |

Whether money is a contribution or a loan depends on the actual arrangement: a written loan with repayment terms is a loan (Part IV); money with no repayment expected is a contribution (Part V).

## How to complete it {#how}

1. Check the box in Part V.
2. Attach a statement with the LLC's name, EIN, tax year and related party, then list each transaction — date, type (contribution or distribution), description and U.S.-dollar amount — and a total.
3. Include the Part V total on **line 1f** (this form) and **line 1h** (all Forms 5472).

There is no prescribed format for the statement; it just needs to describe each transaction clearly. Example:

| Date | Type | Description | Amount (USD) |
| --- | --- | --- | --- |
| 03/10/2025 | Contribution | LLC formation and state filing fees paid by owner | 350 |
| 03/15/2025 | Contribution | Registered agent fee paid by owner | 125 |
| | | **Total Part V transactions** | **475** |

## Amounts {#amounts}

- Everything in **U.S. dollars**. Convert foreign-currency payments and attach the exchange rates used.
- Use the amounts actually paid. Similar items may be combined into one line if the description says so.
- If an actual amount can't be determined, a reasonable estimate within 75%–125% of the actual amount is allowed.

## FAQ {#faq}

**Do expenses the owner paid for the LLC really count?**
Yes. For the LLC this is the owner putting money in — a contribution, reported in Part V. "The bank account never moved, so it's zero" is the most common reason this gets missed.

**Even a $100 fee?**
Yes. Part V has no minimum amount.

**The LLC's account had no activity and the owner paid nothing for it all year.**
Then there may be no reportable transaction. Under the instructions a DE with no Part IV, V or VI transactions doesn't have to file, though many owners file anyway as a protective measure. See [Who must file Form 5472](/guides/who-must-file-form-5472#no-income).

## Sources {#sources}

- [IRS: Instructions for Form 5472 (Rev. December 2024)](https://www.irs.gov/instructions/i5472) — Parts IV and V, reasonable estimates
- [IRS: Treasury Decision 9796](https://www.irs.gov/irb/2017-03_IRB)