Help reporting PPP Loan Forgiven For partnership returns

[Gildardo]

I need to report a PPP forgiven in a partnership return.

I'm following the instructions from Intuit here but I get an error that Sch M-1 is out of balance by the actual PPP Loan amount . Do  I need to make an adjustment and where in the schedule?

Thank you!

[Gildardo]

[dd4vols · Accepted solution]

Open the return.   Across the Icons  toolbar...select "FORMS".

When the Forms box comes up....scroll all the way to the right...6th row up

/\ This is the required forgiveness statement. 

And remember, your "NET INCOME PER Books" includes the non-taxable PPP funds income.

[Gildardo]

Thank you for your reply.

I completed the required PPP forgiveness statement but still marks the error as out of balance.

Do I need to "manually" modify my net income by adding the PPP loan amount to fix the balance?

[sjrcpa]

We're assuming you are starting with a trial balance.

The forgiven PPP Loan should be an M-1 adjustment - Income on books not on tax return.

[dd4vols]

 "Do I need to "manually" modify my net income by adding the PPP loan amount to fix the balance?"

YES, If your net income does not include the non-taxable PPP funds, then of course you do.