PPP income on Schedule C

[JoeRoe]

How do I report PPP income for a Schedule C? I know it's should not be includable as income but is a place to report it.

Thank you,

Joe

[abctax55]

You don't report it.

[sjrcpa]

It may be taxable for the state, though.

[abctax55]

Good point; have you decided "how" you are going to do that?

I'm still debating the best presentation and I I haven't really played with the 2020 program yet.  For projections, I just forced it as a CA adjustment.  I'm hoping Lacerte will give us a snifty "state if different" option.  

[TaxGuyBill]

Doesn't California give you a form or method (such as a California-specific Schedule C) to do that?

Minnesota has a nifty all-in-one form that lists all of the items that MN does not conform with Federal things (mostly new Federal laws and a timing adjustment to Bonus Depreciation).

I would have included the link to that nifty form, but it seems like the MN Revenue site is down right now.

[abctax55]

Lacerte does a great job with any of the routine Fed vs CA differences & non-conformity (the adjustments are on shown on F.540-CA).

And I'd be surprised if there isn't won't be a built-in way to deal with the PPP non-deductible expenses issue.  I'm too bogged down with year-end payroll issues to have even looked yet.  At a minimum, there's a place to add the PPP amount back as income which gets to the same taxable income.  At the Spidell webinar I took back in December, the instructors weren't sure what/how CA wanted it to be presented.

Fortunately "we" have some time to figure it out ... maybe the 2.12.21 delay is a good thing?

[sjrcpa]

and maybe the new bill in CA will pass which will allow the expenses to be deducted.

There are other states that currently don't follow federal PPP treatment either-such as NC and VA.

Anna-I haven't figured out what I'm doing yet nor have I played with this in the software yet.

[abctax55]

"...Anna-I haven't figured out what I'm doing yet nor have I played with this in the software yet."

Susan (my *twin*), why am I not surprised ?  🤣