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Level 4
April 3, 2022
Question

Where to adjust PPP-funded business expenses for AB 80 conformity for CALIFORNIA?

  • April 3, 2022
  • 6 replies
  • 33 views

Where to adjust PPP-funded business expenses for AB 80 conformity in California Returns?

If PPP-funded expenses were deducted for federal purposes but those were not eligible for a California deduction according to a not 25% gross receipt reduction where do I enter the adjustment?

I was looking at this post from Intuit but is just a reminder to look into it (at the very very end).

https://proconnect.intuit.com/community/business-income-taxes/help/how-to-enter-forgiven-ppp-loans-in-proseries/00/119460

I tried this, will that be sufficient?

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6 replies

qbteachmt
Level 15
April 3, 2022

What does this mean: "just a reminder"

Did you expand that link to see all the instructions for CA?

https://proconnect.intuit.com/community/business-income-taxes/help/how-to-enter-forgiven-ppp-loans-in-proseries/00/119460#M4379

It's not a reminder. It's instructions.

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GildardoAuthor
Level 4
April 3, 2022

This all I found:

How do I apply A.B. 80 conformity?

Amounts you have entered in Other Expenses on the federal return will still flow to CA as a deduction.

We have introduced an informational diagnostic to remind you that your entry may need to be reduced or removed, depending on which type of funds it represents. You may need to adjust the amounts for California to those that are allowed.

qbteachmt
Level 15
April 3, 2022

Did you click the Link in the topic link you were given (that you found), at the bottom, where you see:

How to enter CA stimulus, PPP, & grants in ProSeries

It has this arrow:

🔽

And when you click something like that, it expands, so the arrow is sideways, and now you see about three screens' worth of text instructions.

 

Don't yell at us; we're volunteers