Form 1120S instr indicate how to report ppp loan forgiveness

[SL]

what is the input procedure for ppp loan forgiveness and related expenses in proseries?  procedure should result in sch l, m-1 and m-2 being correct, including related shareholder basis statement.  I had to enter various overrides to report per irs 1120S instructions.   Also Intuit blew it with irs form 7203.  Intuit should have seen this coming from last year.  we are all judged by our peers,.  ATX has form 7203 currently available.  ATX less then 1/2 price of proseries.

[The_AntiTax_Man]

@SL  I completely agree with you.

[sagarcpa]

I agree!  I have been working on this all morning.  Can't get the M-1 to balance with the book income because I have PPP expenses that were deducted last year for PPP1 and both loans forgiven this year.  I adjusted the M-2 opening balance to record the expenses paid as a negative in OAA (if we would been able to do this correctly last year) so when I post the loan forgiveness and the "other expenses related to tax-exempt income" for PPP2's expenses paid this year the OAA column is zero.  That is what I want but the AAA column needs the PPP1 expenses from last year to balance to book income.  The IRS instructions say to include expenses that were paid in a prior year with proceeds from PPP loans that were forgiven this year on M-2 Line 3(a) and in column (d) on line 5 but I cant find anywhere on the M-1 worksheet that flows to Line 3(a).  I have only found Line 10H on the actual K-1 and labeling it a non-taxable tax benefit item but I am not sure this is correct...Anyone found a better solution or an entry on the M-1 worksheet that works for this situation?

[The_AntiTax_Man]

@SL 

@sagarcpa : Per   @WDC  on thread: Solved: Re: RevProc 2021-48 Statement to be attached for f... - Intuit Accountants Community

I found the statement (for 1120S) on Schedule K just below Line 16 b (QuickZoom here to required PPP loan forgiveness statement to report tax exempt income)

[sagarcpa]

Thank you.  I had found that button in my travels to get the M-2 to balance as per the IRS instructions.  After a hour and a half on the phone with support, she basically said the program will not post anything to line 3 column a unless it is a separately stated item on the K-1 (which would create income for the shareholder and not the fix the IRS dictates) so I had to uncheck the auto calculation of the M-2 from the worksheet and enter everything manually straight to page 3 of the K-1 and the Schedule M-2.  Not sure what I am paying this crazy amounts of money for the software to enter things manually and to balance myself but I am...Someone dropped the ball on this one.

[TaxGuyBill]

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@sagarcpa wrote:

 enter things manually and to balance myself but I am...Someone dropped the ball on this one.

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Intuit "dropped the ball" on A LOT of things.  You may consider other software next year.