Welcome back! Ask questions, get answers, and join our large community of tax professionals.
- Topics
- Training
- Community
- Product Help
- Industry Discussions
- User Groups
- Discover
- Resources
Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
- Intuit Accountants Community
- :
- Lacerte Tax
- :
- Lacerte Tax Discussions
- :
- SBA 7(a) Loan Subsidy Payments - taxable to CA and CA M-2 question
SBA 7(a) Loan Subsidy Payments - taxable to CA and CA M-2 question
Options
- Mark Topic as New
- Mark Topic as Read
- Float this Topic for Current User
- Bookmark
- Subscribe
- Printer Friendly Page
mhkdgal
Level 4
02-26-2022
05:00 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
The SBA paid 6 months worth of loan payments on an SBA 7(a) loan as part of the CARES Act in 2020. Client is just now filing 2020 S-Corp tax return.
I reported the loan subsidy payments as tax-exempt income on the federal return in Lacerte on Screen 13 as "EIDL advance (grant), as well as other assistance addressed by the CAA Section 278 (non-taxable for federal, taxable in some states."
This amount is taxable for CA, so I entered a CA adjustment on Screen 44 in "Taxable SBA and other loans/grants."
This amount is showing up on my CA M-2 in the Other Adjustments Account on line 3 as an "Other Addition". Since it is not considered tax-exempt income for CA, I did not expect to see this in my Other Adjustments Account for CA at all. What am I missing?
Thank you!
Labels
