Where do I enter PPP forgiveness for a Sole Proprietor return in Schedule C?

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The following article talks about corporations and S corps. Where are the instructions for entering the PPP forgiveness amount on a Sole Proprietor or single member LLC return?

https://proconnect.intuit.com/community/help-articles/help/how-to-find-business-clients-affected-by-the-cares-act-and-apply/00/82717

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Follow the steps below for your return type to report the PPP or EIDL amount as tax-exempt income.

For partnership returns:

Go to Schedule M-1 Items Worksheet.
Under Income Items in Other Permanent Items (income), enter a description and the amount of forgiven loan or EIDL advance received.

The loan amounts will be reported on Schedule K, line 18b, as other tax-exempt income. An adjustment for the loan will generate on Schedule M-1, line 6.

For S-corporate returns:

Go to Schedule M-1 Items Worksheet.
Under Income Items in Other Permanent Items (income), enter a description and the amount of forgiven loan or EIDL advance received.

The loan amounts will be reported on Schedule K, line 16b, as other tax-exempt income. An adjustment for the loan will generate on Schedule M-1, line 5.

For corporate returns:

Go to the Form 1120 p3-6.
Scroll down to the Schedule M-1.
On Line 7 below the Tax-exempt interest field enter a description and the amount of forgiven loan or EIDL advance received.

This will generate an adjustment for the loans Schedule M-1, line 7.

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J

jeffmcpa2010

Level 10

Hmmm New to me.

I have never seen a schedule C with a schedule M reconciliation.

dd4vols

Intuit Community Champion

You DO NOT enter it anywhere for a sole proprietor, or a single member LLL on the federal return.

Depending on which state you are in, you might have to add back to federal income if your state doesn't conform to Fed guidelines,

Here is a link for that.

PPP Loan Forgiveness: Which States Are Taxing Forgiven PPP Loans? (taxfoundation.org)

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