Hi!

TP is a sole proprietor providing home care services and was previously showing and excluding the income in his Schedule C using the instructions from Q14 https://www.irs.gov/individuals/certain-medicaid-waiver-payments-may-be-excludable-from-income

The business was approved as an S-corp in 2024 but the situation is still the same - owns only 1 home and he lives with the patients in that home. Does Notice 2014-7 still apply and can he exclude the income similar to how it is done on Schedule C? 

Assuming it does and 100% of the income is excludable, can he claim operating expenses resulting in net losses?

Thank you!