Gildardo
Level 3
‎07-11-2022 05:45 PM

I need to report a PPP forgiven in a partnership return.

I'm following the instructions from Intuit here but I get an error that Sch M-1 is out of balance by the actual PPP Loan amount . Do  I need to make an adjustment and where in the schedule?

Thank you!

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Gildardo
Level 3
‎07-11-2022 05:46 PM

PPP Partnership - 1.jpgPPP Partnership - 2.jpg

dd4vols
Level 10
Level 10
‎07-11-2022 08:03 PM

Open the return.   Across the Icons  toolbar...select "FORMS".

When the Forms box comes up....scroll all the way to the right...6th row up

/\ This is the required forgiveness statement. 

 

And remember, your "NET INCOME PER Books" includes the non-taxable PPP funds income.

If an answer solves your issue, click on the "Accept as Solution" button! Makes it easier for people to find answers to similar questions that have already been posted.

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Gildardo
Level 3
‎07-12-2022 01:47 PM

Thank you for your reply.

I completed the required PPP forgiveness statement but still marks the error as out of balance.

Do I need to "manually" modify my net income by adding the PPP loan amount to fix the balance?

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sjrcpa
Level 15
‎07-12-2022 02:43 PM

We're assuming you are starting with a trial balance.

The forgiven PPP Loan should be an M-1 adjustment - Income on books not on tax return.


The more I know the more I don’t know.
dd4vols
Level 10
Level 10
‎07-12-2022 04:59 PM

 "Do I need to "manually" modify my net income by adding the PPP loan amount to fix the balance?"

 

YES, If your net income does not include the non-taxable PPP funds, then of course you do.

If an answer solves your issue, click on the "Accept as Solution" button! Makes it easier for people to find answers to similar questions that have already been posted.