cjoh
Level 1
03-13-2022
06:28 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Example: S corporation has 2021 net income of $50,0000 and $100,000 in PPP loan forgiveness in 2021.
My understanding is that the $100,000 is recorded on schedule M-2 as follows:
Line 3 column a $100,000
Line 3 column d $100,000
Line 5 column d ($100,000)
Balance sheet - Retained earnings are increased by $100,000.
Shareholder's basis is increased by net income of $50,000 and $100,000 other tax exempt income and decreased by $100,000 of non deductible expenses. Is that correct?
AAA and shareholder basis was the same as of 12/31/21. Now AAA is $100,000 higher. I know they don't have to match.
Is the above correct or am I doing something wrong?
Thank you for your help.
Labels