WI PPP Flowthrough

Forum|Forum|5 years ago
February 3, 2021
8 replies
17 views

I have an S-Corp client that received a PPP loan during 2020. They have yet to receive forgiveness on the loan but they are reasonably certain that they will be forgiven the full amount. That means that I don't recognize the income on the federal return yet, but on the state return I cannot deduct the expenses related to the PPP loan forgiveness. I cannot find where to input that information on the WI Form 5S and get it to flow through to any of the Wisconsin 5K-1's or the return itself.

How do I get the program to recognize the loan expenses aren't deductible and get it to flow through to every form?

ProSeries Professional

This topic has been closed for replies.

Best answer by JRC

It should show up on Line #1 of the 5K-1 Column (c) Adjustment - increasing Ordinary Business Income.

Again, Make sure you are on Page (6) of the Return Line 10 (A) Other additions;

"SCH I AJE-SEC 276(A) & 278(a)" should be the addition description you need to enter.

IRonMaN

Level 15

Any chance WI will change the rules? Next door in Minnesota we are putting returns with PPP money aside to wait and see if Minnesota is going to change the rules and comply with the feds.

Slava Ukraini!

JRC

Level 7

They have specific instructions on this for Forms 5S and the Partnership returns on where to enter it.

For form 5S enter on line 10. Other additions: of Form 5S, Page 5-6.

I am filing extensions on these to avoid having to amend them if Wisconsin changes it's law. I heard they have introduced bills to correct this.

M

Mary McDonald

Level 2

I've put the information there, but it isn't flowing onto the K1s.

JRCAnswer

Level 7

It should show up on Line #1 of the 5K-1 Column (c) Adjustment - increasing Ordinary Business Income.

Again, Make sure you are on Page (6) of the Return Line 10 (A) Other additions;

"SCH I AJE-SEC 276(A) & 278(a)" should be the addition description you need to enter.

JRC

Level 7

Hopefully you held off on filing the Return because Wisconsin just passed a law that will affect the handling of the PPP Funds spending and forgiveness.. I do not know the specifics yet.

J

JMargAuthor

Level 2

Thankfully we did hold off.

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