iizukaakemi
Level 1
07-20-2021
09:04 AM
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On Federal (1120S), I enter non-taxable PPP loan forgiveness (M-1 5a tax exempt income). I like this forgiveness to be taxable on 100S as I didn't meet 25% income decrease in the pervious quarter.
Where should I adjust the PPP forgiveness income to be taxable on 100S returns?
a-zbookkeeping
Level 1
11-17-2021
05:29 PM
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I faced this problem on my own 2020 tax return and the easiest way for me it was: to add the P.P.P. loan forgiveness amount back to California income by reporting it as other addition on 100-S Page-1 Line-7 and make the adjustment necessary on CA Sch M-1.
I intended to not decrease the payroll expenses by the forgiveness amount because it was already reported to the state and I did not want to create any confusion.
