Welcome back! Ask questions, get answers, and join our large community of tax professionals.
- Topics
- Training
- Community
- Product Help
- Industry Discussions
- User Groups
- Discover
- Resources
See what's trending for the November 15th deadline (Form 990) and resources for the upcoming tax season. View Lacerte Hot Topics.
See what's trending for the November 15th deadline (Form 990) and resources for the upcoming tax season. View Lacerte Hot Topics.
Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
- Intuit Accountants Community
- :
- Lacerte Tax
- :
- Lacerte Tax Discussions
- :
- PPP expense disallowance on 1120S for California
PPP expense disallowance on 1120S for California
Options
- Mark Topic as New
- Mark Topic as Read
- Float this Topic for Current User
- Bookmark
- Subscribe
- Printer Friendly Page
lahilliar
Level 1
02-06-2021
12:32 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I'm working on a California Form 100S and need to disallow expenses paid from PPP loan proceeds. If I try to change the input for Schedule F, it will affect the federal return. If I try to make it an adjustment on the M-1 it changes my book income and doesn't tie to the correct taxable income for California.
Labels
This discussion has been locked.
No new contributions can be made. You may start a new discussion
here
2 Comments 2
qbteachmt
Level 15
02-06-2021
12:50 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I did a search in the top on:
CA PPP
And found this:
*******************************
Don't yell at us; we're volunteers
Don't yell at us; we're volunteers
Jon-L
Level 3
02-13-2021
06:30 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Is CA only going to be a problem this year if the PPP has been forgiven before 12/31/2020? Because we have to wait to see.
"A.B. 1577 denies business expense deductions for those expenses that were paid for using forgiven loan funds."
Technically it is not the cancelation of the PPP debt that cause an increase in net income, taxable to CA, but rather the denial of the expenses paid with "forgiven" loan funds.
If my client's PPP loan is not yet forgiven at 12/31/2020 then the expenses paid are allowable on my 2020 return, and not disallowed until 2021 when the loan is forgiven (at which point I'll just include them in income for simplicity; 6 of one or half dozen of the other!).
