I need to report a PPP forgiven in a partnership return.
I'm following the instructions from Intuit here but I get an error that Sch M-1 is out of balance by the actual PPP Loan amount . Do I need to make an adjustment and where in the schedule?
Thank you!
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Open the return. Across the Icons toolbar...select "FORMS".
When the Forms box comes up....scroll all the way to the right...6th row up
/\ This is the required forgiveness statement.
And remember, your "NET INCOME PER Books" includes the non-taxable PPP funds income.
Open the return. Across the Icons toolbar...select "FORMS".
When the Forms box comes up....scroll all the way to the right...6th row up
/\ This is the required forgiveness statement.
And remember, your "NET INCOME PER Books" includes the non-taxable PPP funds income.
Thank you for your reply.
I completed the required PPP forgiveness statement but still marks the error as out of balance.
Do I need to "manually" modify my net income by adding the PPP loan amount to fix the balance?
We're assuming you are starting with a trial balance.
The forgiven PPP Loan should be an M-1 adjustment - Income on books not on tax return.
"Do I need to "manually" modify my net income by adding the PPP loan amount to fix the balance?"
YES, If your net income does not include the non-taxable PPP funds, then of course you do.
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