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PPP DEDUCTION FOR LOANS UNDER 150000.00 FOR CALIFORNIA

delmarflwr2
Level 1

Can any help me with this problem. I am under the impression that loans for PPP under Federal guidelines are expenses are allowed which were used for the forgiveness. 

Does Ca. allow to take the deduction for amounts used for the same purposes. Meaning the amount used to have loan forgiven can be deducted and does not have to be adjusted. I have heard too many ideas on this matter.

Conclusion my question is this. If a company received 120,000.00 in PPP money, had it forgiven and use approx a 145000.00 in payroll costs to have this forgiven. Are they allowed to take the 145k off of return and an adjustment does not have to made to add back to the bottom for tax purposes on the S corp K-1. I have heard that it does but now heard under 150k loan amount it does not have to made.

 

Please explain 

Thanks

This is driving me crazy

 

 

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2 Replies 2
abctax55
Level 15

Rather than going "crazy", sign up for Spidell's Free Flash Alerts.

To summarize, CA hasn't decided, yet.

Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

If a post answers your question, click on *Accept as solution* for future searches
delmarflwr2
Level 1

I did and it didn't say it passed or not. And it was submitted AB-281 and it is sitting with no action.

 

Thanks. I appreciate the help but according to my source. Doesn't look like it will go through

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