TaxGuyBill
Level 15
01-29-2021
07:00 PM
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Okay, so it is asking us to ADD the forgiveness there? That makes sense.
The Instructions for that line messed me up. I thought it was saying we need to enter a SUBRACTION for the PPP expenses, which didn't make any sense at all to me. But I still don't quite understand what the Instructions are trying to say. For Federal purposes, the expenses are deductible regardless if the loan is forgiven or not.
If you excluded loan forgiveness from your income under the Paycheck Protection Program on your federal return, subtract the expenses that would have been deductible if you had not received the loan forgiveness from the amount of the loan that was forgiven.