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Adjustment to 100S for PPP Expenses

Level 1

California does not conform the the Federal rule that expenses paid with PPP Funds are deductible. Therefore, I need to increase the income on my 100S so the K-1 shows the correct amount for CA. Where can I do this in ProSeries? 


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2 Comments 2
Level 15

"...need to increase the income "

No, you need to DECREASE the appropriate expenses (i.e payroll costs, payroll taxes, utilities, etc).  And as of now, CA says you can't just back off the "total".

If you don't subscribe to Spidell for CA specifics, you should.  

"*******Tax software is no substitute for a professional tax preparer*******
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Level 1

I appreciate your reply. I am clear on the law as it stands now, just not the mechanics in ProSeries for making the necessary changes to ultimately increase the income allocated out on the CA K-1. For example, when I try to change line 8 on Schedule F on the 100S to decrease my payroll expenses, it doesn't allow an entry directly on the 100S as everything flows from the federal return. I was hoping others were making these adjustments within ProSeries and could help with the mechanics. I know I can override it, but thought there may be a better way. I wasn't able to find anything directly related to non-conforming states in ProSeries help. If anyone has a link to something like that I would greatly appreciate it. Thanks!

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