PPP does not go in gross receipts.  On your books, you would zero the note payable PPP thru Retained Earnings and it gets added to their basis.  I am not familiar with Lacerte but Pro Series has a spot on the M-1 Items worksheet.  You list it under Income Items in Other Permanent Items.  The amount will then be reported on Sch K, line 16b, as other tax-exempt income.

I had read that since Texas does not conform to the 2020 tax changes, the Forgiven PPP loan is treated as forgiveness of debt and included as gross receipts for Texas Franchise purposes only.  I agree with the treatment for Federal  filings.

My bad.....I missed the Texas Franchise part.  Sorry can't help with that.

AICPA has a chart "Paycheck Protection Program (PPP) State Tax Treatment Chart".

The latest revision, Feb 11, 2011, says for TX  under "Taxability of CARES Act PPP loan
forgiveness" - Specific guidance has not been issued."

So I'm in the I don't know camp.

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AICPA has a chart "Paycheck Protection Program (PPP) State Tax Treatment Chart".

The latest revision, Feb 11, 2011, says for TX  under "Taxability of CARES Act PPP loan
forgiveness" - Specific guidance has not been issued."

So I'm in the I don't know camp.

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It's going to be a fun tax season, isn't it!?!  I'm thinking we might not know what all the tax laws are by Jeff's extended due date of 8/15 this year.

At least MD made some sort of decision.  I'm sure the MD forms won't be out/approved/efileable for weeks but at least the ball is rolling.  Unfortunately you're the Indiana Jones in this particular episode of tax reality TV!  Run?

VA is still debating just how many business taxpayers they want to screw over.

But back to the current topic:  Texas tax conformity.  There's a problem you don't see very often.  It's not only a conform/don't conform problem, it's also a timing problem.  Are loan proceeds gross receipts when received?  Or when "all events" have made them forgivable?  Or when the SBA stamps the form approved and pays the bank back?

Exactly.  TSCPA has  posted an article that basically says if the legislature doesn't change it, it is taxable.  The loans I am concerned about have been forgiven by the SBA prior to year end, so I have all events.  We can wait to file Texas.  My client likes to accrue the tax and I am trying to decide which way to accrue.