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PPP loan forgiveness

rbell2315
Level 1

How do I enter PPP loan forgiveness on the Balance Sheet of an S Corp and how do I enter it in the program?

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11 Replies 11
IRonMaN
Level 15

But if a loan is forgiven, why would it go on the balance sheet?  It is book income to the business and nontaxable for federal tax purposes.


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dascpa
Level 9

Other Income on the book's P&L and M-1 adjustment on the tax return - income reported on books but not taxable.

TaxGuyBill
Level 15

But from what I understand, that amount still increase the shareholder's Basis.  Can somebody confirm that for me?

If that is the case, where is it entered so the 'adjustments to Basis' shows up on the K-1?

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sjrcpa
Level 15

Confirmed.

Not being a ProSeries user, I don't know.

I gave the Lacerte answer here https://proconnect.intuit.com/community/lacerte-tax-discussions/discussion/can-and-how-to-input-ppp-...


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IRonMaN
Level 15

There is an area on the ProSeries schedule K worksheet for other tax exempt income that affects shareholder basis.  I would assume that would be its final resting place but I haven't tried it to see what happens.


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TaxGuyBill
Level 15

Ah, thank you!

IRonMaN
Level 15

You betcha!


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VYASVYAS33
Level 2

where to entered ppp loan on s-corp tax return & selp-employed sch"c" on proseries = what about expenses claimed - for ppp forgiveness = can we claimed on i-tax 2020 

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qbteachmt
Level 15

Enter: https://proconnect.intuit.com/community/business-income-taxes/help/how-to-enter-forgiven-ppp-loans-i...

The expenses are deductible. (fixed)

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TaxGuyBill
Level 15

@qbteachmt wrote:

If and when the loan is Forgiven, the expenses are deductible.


 

The expenses are deductible regardless if the loan is forgiven or not.   😁

sjrcpa
Level 15

Except for some states.


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