PPP loan was extended as PPPEA

[HOPE2]

Hello, please someone help me to get rid of this confusion; FTB says: The Paycheck Protection Program Extension Act (PPPEA) (Public Law 117-6) was enacted on March 30, 2021, and extended the covered period of the PPP from March 31, 2021, through June 30, 2021. California law does not conform to this extension and does not allow an exclusion from income for PPP loans made after March 31, 2021.

First, I really need your help to understand differences for 1,2 and 3 above picture.

As long as loan forgiveness is not granted, we do not have forgiveness(I mean 1 and 2 boxes are meaningless) There is a gap from applying to get a forgiveness.

My client received PPP loan forgiveness with two different times, first one has been before March 31(loan deposited on FEB first) and second one been around August 20th( the loan deposited on June 11th).

 I need to get some clarity about what FTB says.

And how can I enter different times of the PPP loan forgiveness since ProSeries's questions is here and does not have separate box for different times.  

So, what about California return if it is not supposed any exclusion income happens after March 31 when clients have received forgiveness, should I make an adjustment, but I did not see anything about PPPEA in CA540,also there is not any part on Federal return to enter the date before or after March 31.

I am totally confused, thank you so much for taking time to answer.

[rcherenson]

It may be a time to call Proseries for technical help. Granted the two times I called them this year, their fixes did not work and I had to get creative...but my PPP clients were very straightforward, 2020, forgiven, 2021, forgiven and done. In your case is it giving you an error from CA because of the date you entered in the Federal return?

[HOPE2]

Thanks, I have no error in California. I do not see any adjustment because of PPPEA in California.

And I would like to dive more about 1), 2) boxes, what  their differences  are.

Have an awesome day.

[HOPE2]

I hope someone can help me get some clarity around the situation.

[qbteachmt]

"the loan deposited on June 11th)."

Loan forgiven in August, Banking happened in June, but when was the Loan Made? When it got approved = Date?

[HOPE2]

Thanks for response qbteachmt , I have some and this is one of them.

Loan approved date: 04/26/2021

Deposited in bank: 05/04/2021

Forgiveness payment date: 09/28/2021

[qbteachmt]

"Loan approved date: 04/26/2021"

FTB: California law does not conform to this extension and does not allow an exclusion from income for PPP loans made after March 31, 2021.

That's when they got the Loan. The Banking deposit and the forgiveness dates are not what you use, for the CA nonconformity.

[HOPE2]

Thanks, but to be honest need more to better understanding. Let me know, based on the date I gave it.

[qbteachmt]

Let's call @Accountant-Man because I saw he was recently dealing with that nonconformity issue.