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.
This is driving me crazy
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To summarize, CA hasn't decided, yet.
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