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Has anyone had to deal with the PPP Loan that some companies received? I know that the loan itself is not taxable but do you show it somewhere if it is on a Sch C income company? And the expenses for this particular client all the PPP was used for was to pay workers.
Thanks
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Most of us have.
It goes nowhere on Schedule C. Schedule C reports taxable income only.
At the federal level all the expenses are deductible. Your state may have a different treatment.
If it was forgiven in 2021, or if you're treating it as forgiven in 2021 you have to attach a statement to the return.
Ex-AllStar
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Need to add to the question what if it was a small company and they got a loan that was forgiven and it was used to pay the owner operator who is the only one in the company?
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Then I think you just complete the statement about the PPP Loan Forgiveness.
Ex-AllStar
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"and it was used to pay the owner operator who is the only one in the company?"
Use to pay workers = fine.
Used to pay the owner = fine.
What happens is, they Applied. As long as they used the funds as applied for and as permitted, it is fine.
Do you have some specific concern?
"Level Up" is a gaming function, not a real life function.
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No no special concerns just making sure. No I have to find where to do the statement
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The statement is PS professional only, From the top menu choice Forms & search PPP loan stmt