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Program handling of PPP loan forgivness funds.

Ehrler CPA
Level 1

Presently, the tax program appears to include the tax free PPP loan forgiveness funds in taxable income, which is carried over to Schedule K as ordinary income. Also, the PPP is carried to retained earnings and is included in a shareholders basis, and available for NOL utilization.

I'm not sure if the PPP treatment is correct. Appreciate any other comments on the subject. 

 

 

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9 Comments 9
IRonMaN
Level 15

I'm guessing it is treating it that way because that is how you entered it.  In reality it is tax free income for federal and treated as a reconciling item between book and tax income.


Slava Ukraini!
abctax55
Level 15

SMH...

"Tax software is no substitute for a professional tax preparer"
itonewbie
Level 15

Anna, you always have me look up the acronyms you use. 🤣

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Still an AllStar
abctax55
Level 15

And pay attention to the State treatment.  Some are following the Feds regarding deductibility of the expenses paid with PPP funds; some are not.

"Tax software is no substitute for a professional tax preparer"
abctax55
Level 15

Sorry...😘

"Tax software is no substitute for a professional tax preparer"
IRonMaN
Level 15

Obi-Wan - in case you haven't looked it up yet - SMH - Snarky Memes Here 😀


Slava Ukraini!
itonewbie
Level 15

Snarky Memes Here, Shaking My Head. 🤣

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Still an AllStar
abctax55
Level 15

You'se talkin' to ME, Mr. Yote ?!?!??!?!?!??!?!?!??!?

"Tax software is no substitute for a professional tax preparer"
IRonMaN
Level 15

I talk to pretty much anybody that will listen😁


Slava Ukraini!