01-26-2021 02:06 PM
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.
9 Comments 9
01-26-2021 02:15 PM
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.
Ukraine - hang in there
01-26-2021 03:02 PM
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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