TOPLINETAX
Level 1
‎03-29-2021 07:18 PM

The following article talks about corporations and S corps. Where are the instructions for entering the PPP forgiveness amount on a Sole Proprietor or single member LLC return?

https://proconnect.intuit.com/community/help-articles/help/how-to-find-business-clients-affected-by-...

 

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Follow the steps below for your return type to report the PPP or EIDL amount as tax-exempt income.

For partnership returns:
  1. Go to Schedule M-1 Items Worksheet.
  2. Under Income Items in Other Permanent Items (income), enter a description and the amount of forgiven loan or EIDL advance received.

The loan amounts will be reported on Schedule K, line 18b, as other tax-exempt income. An adjustment for the loan will generate on Schedule M-1, line 6. 

For S-corporate returns:
  1. Go to Schedule M-1 Items Worksheet.
  2. Under Income Items in Other Permanent Items (income), enter a description and the amount of forgiven loan or EIDL advance received.

The loan amounts will be reported on Schedule K, line 16b, as other tax-exempt income. An adjustment for the loan will generate on Schedule M-1, line 5. 

For corporate returns:
  1. Go to the Form 1120 p3-6.
  2. Scroll down to the Schedule M-1.
  3. On Line 7 below the Tax-exempt interest field enter a description and the amount of forgiven loan or EIDL advance received.

This will generate an adjustment for the loans Schedule M-1, line 7. 

 

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