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California PPP non-deductible expenses

detaylorcpa
Level 2

For an entity (S corp in my case) that does not meet the 25% reduction in gross receipts test to deduct the expenses used for PPP loan forgiveness - CA wants the 'specific' expenses reduced (i.e payroll, rent, etc). I see where lacerte has the entry on screen 13 (s corp) to enter expenses nondeductible to state related to a forgiven PPP loan - I guess this is the only option?

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detaylorcpa
Level 2
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qbteachmt
Level 15

Start with your Help article:

https://proconnect.intuit.com/community/corporation/help/how-to-enter-forgiven-ppp-loans-in-lacerte/...

 

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amec
Level 3

California changed their tune on that a while ago. They no longer require that you reduce each specific expense. One line item on the return is now ok.

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qbteachmt
Level 15

You will want to use the link I gave, then follow the link there, and don't overlook expanding subtopics in these Intuit articles, so that you get the full reference material out of that article.

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detaylorcpa
Level 2

Where did you get this information? Do you have a 'site' for it?

 

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amec
Level 3

https://www.ftb.ca.gov/forms/2020/2020-100s-booklet.html

 

Paycheck Protection Program (PPP) Loan Forgiveness. Under federal law, the Consolidated Appropriations Act, 2021 allows deductions for eligible expenses paid for with covered loan amounts that would be or would reasonably be expected to be forgiven under the PPP. California law does not conform to this federal provision. If eligible expenses were deducted for federal purposes, include this amount on line 7.

detaylorcpa
Level 2
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