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Program handling of PPP loan forgivness funds.

Ehrler CPA
Level 1

Presently, the tax program appears to include the tax free PPP loan forgiveness funds in taxable income, which is carried over to Schedule K as ordinary income. Also, the PPP is carried to retained earnings and is included in a shareholders basis, and available for NOL utilization.

I'm not sure if the PPP treatment is correct. Appreciate any other comments on the subject. 

 

 

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9 Replies 9
IRonMaN
Level 15

I'm guessing it is treating it that way because that is how you entered it.  In reality it is tax free income for federal and treated as a reconciling item between book and tax income.

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abctax55
Level 15

SMH...

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itonewbie
Level 15

Anna, you always have me look up the acronyms you use. 🤣

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abctax55
Level 15

Sorry...😘

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IRonMaN
Level 15

Obi-Wan - in case you haven't looked it up yet - SMH - Snarky Memes Here 😀

ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)
itonewbie
Level 15

Snarky Memes Here, Shaking My Head. 🤣

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Still an AllStar
abctax55
Level 15

You'se talkin' to ME, Mr. Yote ?!?!??!?!?!??!?!?!??!?

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IRonMaN
Level 15

I talk to pretty much anybody that will listen😁

ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)
abctax55
Level 15

And pay attention to the State treatment.  Some are following the Feds regarding deductibility of the expenses paid with PPP funds; some are not.

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