California Individual Return 2020

[archa5]

California, Sole Proprietor, Schedule C (no employees) got a $5,200 PPP Loan, which has been forgiven.
The calculation of the loan has been based on the net income of the Sole Proprietor.
Now comes the story that California wants the deduction of the business would be reduced by the amount of the exclusion allowed under PPP. How technically to bring this deduction on Schedule C, the business has no kind  of expense which is more than the loan amount ($5,200).

[Just-Lisa-Now- · Accepted solution]

If it was based on the net profit and your "wage", it wouldnt be a deduction anyhow, so theres nothing to reduce. Theres nothing you need to do for this.

[qbteachmt]

Are you asking about the nondeduction of expenses? Are you aware of the AB 80 changes?

https://www.kcoe.com/ab-80-summary-california-ppp/

https://www.times-standard.com/2021/04/30/a-huge-sigh-of-relief-ab-80-provides-6-2-billion-in-tax-cu...

[archa5]

Thank you much for the information.

ac

[archa5]

Thank you for your help.

ac

[archa5]

Very needed info.
Thanks. 

[archa5]

Thanks many.