PPP loan forgiveness

Forum|Forum|5 years ago
January 20, 2021
11 replies
27 views

How do I enter PPP loan forgiveness on the Balance Sheet of an S Corp and how do I enter it in the program?

ProSeries Professional

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IRonMaN

Level 15

But if a loan is forgiven, why would it go on the balance sheet? It is book income to the business and nontaxable for federal tax purposes.

Slava Ukraini!

dascpa

Level 11

Other Income on the book's P&L and M-1 adjustment on the tax return - income reported on books but not taxable.

T

TaxGuyBill

But from what I understand, that amount still increase the shareholder's Basis. Can somebody confirm that for me?

If that is the case, where is it entered so the 'adjustments to Basis' shows up on the K-1?

sjrcpa

Level 15

Confirmed.

Not being a ProSeries user, I don't know.

I gave the Lacerte answer here https://proconnect.intuit.com/community/lacerte-tax-discussions/discussion/can-and-how-to-input-ppp-loan-forgiveness-into-lacerte/00/116409

The more I know the more I don’t know.

V

VYASVYAS33

Level 2

where to entered ppp loan on s-corp tax return & selp-employed sch"c" on proseries = what about expenses claimed - for ppp forgiveness = can we claimed on i-tax 2020

qbteachmt

Level 15

Enter: https://proconnect.intuit.com/community/business-income-taxes/help/how-to-enter-forgiven-ppp-loans-in-proseries/01/119460#M4379

The expenses are deductible. (fixed)

Don't yell at us; we're volunteers

T

TaxGuyBill

@qbteachmt wrote:

If and when the loan is Forgiven, the expenses are deductible.

The expenses are deductible regardless if the loan is forgiven or not. 😁

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