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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.
The more I know the more I don’t know.
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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.
The more I know the more I don’t know.
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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?
Don't yell at us; we're volunteers
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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
