Where to enter EIDL Grant? PPP Loan?

[hollywood]

I am trying to find a place to enter the EIDL grant (the 1k/employee) in Lacerte for an S-Corp.

Where do you think this will be input.  

[Accountant-Man]

What do you mean by this, <<(the 1k/employee>>?

[hollywood]

The 1k Grant per employee up to 10k grant, not the PPP loan.

[TaxGuyBill]

It is nontaxable, just like the forgiven PPP.

So it is not an item of income for tax purposes.  It would be income for book income (Balance Sheet) with a M-1 Adjustment.

[TaxGuyBill]

I want to post a potential correction to my prior answer.

If I understand things correctly, it should be entered as tax-exempt income on the tax return.  That is because it DOES affect your Basis.

Can anybody confirm that for me?

[sjrcpa]

Confirmed (again 😀)

[Kimberley]

The EIDL Advance is not-taxable on the federal side.  Entry as a tax-exempt income on screen 31 makes sense.  However, for state purposes, at least in California, the grant is considered taxable.  I cannot find a way to add a taxable income line to the state return that will roll into the K1 and not impact the federal return.  

Anybody?

KK

[TaxGuyBill]

This shows how it is supposed to be entered in Lacerte:

https://proconnect.intuit.com/community/corporation/help/how-to-enter-forgiven-ppp-loans-in-lacerte/...

[Kimberley]

This is for the PPP loan forgiveness.  The EIDL grant is not part of the PPP funding.  Is there no current means to show income as non-taxable to the federal but taxable to the state?

[TaxGuyBill]

For Federal purposes, the EIDL and PPP are treated the same.  I suspect that most states also treat EIDL and PPP the same way.  If your state has the same treatment between the two, you should be able to enter it the same way.

[Hega3]

I understand that forgiven PPP loans and EIDL Advances are treated same for tax purposes, but how is Lacerte treating EIDL?  There is special input for forgiven PPP Loans (screen 10 for Pships and screen 13 for Scorp) and if you enter the amount of EIDL Advance in same location, then the statement automatically generated shows "PPP Loan Forgiven", but it does flow it through properly to M-1, etc.  If you don't use the PPP section, then you have to manually enter all the adjustments to M-1, etc.  Would be nice if Lacerte had entry specifically for EIDL Advances so the statement would be correct....if there is one, I haven't been able to find it

[Kimberley]

But even if recorded as Lacerte has instructed, the state K1 allocations are not in sync.  All of my issues seem to be on how Lacerte is handling things on the state side.  The federal side is easy.

Currently, I get a critical diag:  There are differences between the California totals and the shareholders' allocations for certain items on the S Corp return.  The only thing that is off is the EIDL Advance.

[Kimberley]

After 2 hours and 2 tech support people, Lacerte's response is that there is an update for the state impact expected in mid-February.  

Holding my breath...

[Shellycpa]

Following...

[qbteachmt]

Try this:

https://proconnect.intuit.com/community/corporation/help/how-to-enter-forgiven-ppp-loans-in-lacerte/...

[Kimberley]

TaxGuyBill already posted this.  It's not what we are asking about in this thread.

[qbteachmt]

@Kimberley 

"TaxGuyBill already posted this. It's not what we are asking about in this thread."

Okay, I think you might want to read this entire topic, again. How many times will you need to see: They are treated The Same.

Would these other topics help?

https://proconnect.intuit.com/community/s-corporation/help/s-corporation-schedule-m-1-m-3-frequently...

https://proconnect.intuit.com/community/loans/help/paycheck-protection-program-ppp-loan-forgiveness-...

https://proconnect.intuit.com/community/balance-sheet/help/tax-basis-capital-account-reporting/01/12...

https://proconnect.intuit.com/community/s-corporation/help/s-corporation-schedule-m-1-m-3-frequently...

https://proconnect.intuit.com/community/corporation/help/how-to-enter-forgiven-ppp-loans-in-lacerte/...

Perhaps there is a specific thing you want help with. So far, all you asked is how to enter EIDL, which is nontaxable other Income, and the PPP Loan would be entered the same once it is forgiven, since it also is nontaxable.

Is there something we missed?

[Kimberley]

Using the PPP section will generate statements that refer to the amounts as PPP forgiveness.  The EIDL Advance IS NOT the same as PPP.  If the state's treatment of the EIDL is the same as the federal, we can enter them as grants and be done with it.  But, when the state does not conform, albeit using the PPP entry will generate the correct numbers, the details are wrong.  EIDL is NOT PPP.

[qbteachmt]

This is from Feb 3:

"Lacerte's response is that there is an update for the state impact expected in mid-February.

Holding my breath..."

And this is what Intuit posted for a CA update to Lacerte:

2020.050

2021-02-19

And today is Feb 12.

[Daren G]

Kimberly,   i understand your frustration and I am having the same problem.  i hope they update this.     the other people in here are not understanding the difference in CA law.  

There is a huge difference in that PPP reduces expenses.   EIDL grant does NOT reduce expenses, it is has to be treated as income for CA. 

[qbteachmt]

"the other people in here are not understanding the difference in CA law."

Until Kimberley's input, this wasn't a CA topic. Yes, it is understood that CA is nonconforming. No one here controls when Intuit makes CA forms or input functions available, and I see there are 3 days to go from their published scheduled release.

[mamatiger]

Kimberley I just downloaded an update and there is now a line for EIDL grant under where the PPP entry is.  It seems to be flowing through to CA properly.