Welcome back! Ask questions, get answers, and join our large community of tax professionals.
Showing results for 
Search instead for 
Did you mean: 

How do PPP loans get reported on 1120-S if they are not yet forgiven

Level 1

If PPP loans are not yet forgiven, how is the PPP loan reported on 1120-S?  

0 Cheers

This discussion has been locked. New comments cannot be posted on this discussion anymore. Start a new discussion

1 Comment 1
Level 8

I have been recording them as a current liability.  Except I do have an accrual basis client who had satisfied all requirements for forgiveness and submitted their application for forgiveness before 12/31/2020 and was granted forgiveness mid-January of 2021.  I will report this as non-taxable income for 2020.  

In Lacerte there are fields on the Gross Income screen 13 for PPP loan forgiveness and EIDL grants.  These entries will then flow through to Sch K, Sch K-1, Sch M-1 & M-2 and increases the shareholders' basis.