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Adjust Sub S basis for PPP loan forgiveness

Carson  man
Level 1

How do you input the basis increase for the PPP loan forgiveness in Proseries? 

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5 Replies 5
Accountant-Man
Level 11

Why does the basis increase?

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Carson  man
Level 1

Basis increases as it is treated like tax-exempt interest. 

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rbynaker
Level 11

M-1: "Income recorded on books" which should then flow to OAA on M-2.

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Carson  man
Level 1

I inputted the loan forgiveness on line 5a of the M-1 and it does not flow to the M-2. 

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Accountant-Man
Level 11

I entered book income higher than tax income by 10K, then called it "tax exempt interest" on nthe M-1 adjustments sheet. 

10k flowed to M-2, OAA.

There seems to be no other way to get it to OAA unless you manually enter it. No code.

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