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PPP income on Schedule C

JoeRoe
Level 1

How do I report PPP income for a Schedule C? I know it's should not be includable as income but is a place to report it.

Thank you,

Joe

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abctax55
Level 15

You don't report it.

(I wanna be a member of the pot stirring club too)
sjrcpa
Level 15

It may be taxable for the state, though.


ex-AllStar
abctax55
Level 15

Good point; have you decided "how" you are going to do that?

I'm still debating the best presentation and I I haven't really played with the 2020 program yet.  For projections, I just forced it as a CA adjustment.  I'm hoping Lacerte will give us a snifty "state if different" option.  

(I wanna be a member of the pot stirring club too)
TaxGuyBill
Level 15

Doesn't California give you a form or method (such as a California-specific Schedule C) to do that?

Minnesota has a nifty all-in-one form that lists all of the items that MN does not conform with Federal things (mostly new Federal laws and a timing adjustment to Bonus Depreciation).

I would have included the link to that nifty form, but it seems like the MN Revenue site is down right now.

abctax55
Level 15

Lacerte does a great job with any of the routine Fed vs CA differences & non-conformity (the adjustments are on shown on F.540-CA).

And I'd be surprised if there isn't won't be a built-in way to deal with the PPP non-deductible expenses issue.  I'm too bogged down with year-end payroll issues to have even looked yet.  At a minimum, there's a place to add the PPP amount back as income which gets to the same taxable income.  At the Spidell webinar I took back in December, the instructors weren't sure what/how CA wanted it to be presented.

Fortunately "we" have some time to figure it out ... maybe the 2.12.21 delay is a good thing?

(I wanna be a member of the pot stirring club too)
sjrcpa
Level 15

and maybe the new bill in CA will pass which will allow the expenses to be deducted.

There are other states that currently don't follow federal PPP treatment either-such as NC and VA.

Anna-I haven't figured out what I'm doing yet nor have I played with this in the software yet.


ex-AllStar
abctax55
Level 15

"...Anna-I haven't figured out what I'm doing yet nor have I played with this in the software yet."

Susan (my *twin*), why am I not surprised ?  🤣

(I wanna be a member of the pot stirring club too)
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