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How to show a non - taxable EID GRANT on the c corp return?

Level 1

A  C corp received a non taxable EIDG Grant.  Because it was deposited into their corp checking account, I have to show the offset as non taxable income.  I don't know where to post it.
Any help, please.

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3 Replies 3
Level 15

M-1. Income on books not on tax return.


ex-AllStar
Level 15

Are you sure it's not taxable?


ex-AllStar
Level 13

This is Not why you show it: "Because it was deposited into their corp checking account, I have to show the offset as non taxable income."

You show it because they Got it. If the SBA showed up and handed it over in Cash, you would still need to include it.

It's an advance against the EIDL Loan program, and considered to be the forgivable portion because it was issued under an Emergency Advance disaster condition.

For the PPP: You might remember that the news releases were to note that any otherwise tax deductible expenses being paid for by these monies would also not be reported as deductible, when that income is not being reported for taxable purpose. For the EIDL, that doesn't seem to be established, yet.

Here:

https://bench.co/blog/tax-tips/2020-taxes-ppp-eidl-pua/

 

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