This discussion has been locked. No new contributions can be made. You may start a new discussion here
@SL I completely agree with you.
I agree! I have been working on this all morning. Can't get the M-1 to balance with the book income because I have PPP expenses that were deducted last year for PPP1 and both loans forgiven this year. I adjusted the M-2 opening balance to record the expenses paid as a negative in OAA (if we would been able to do this correctly last year) so when I post the loan forgiveness and the "other expenses related to tax-exempt income" for PPP2's expenses paid this year the OAA column is zero. That is what I want but the AAA column needs the PPP1 expenses from last year to balance to book income. The IRS instructions say to include expenses that were paid in a prior year with proceeds from PPP loans that were forgiven this year on M-2 Line 3(a) and in column (d) on line 5 but I cant find anywhere on the M-1 worksheet that flows to Line 3(a). I have only found Line 10H on the actual K-1 and labeling it a non-taxable tax benefit item but I am not sure this is correct...Anyone found a better solution or an entry on the M-1 worksheet that works for this situation?
@sagarcpa : Per @WDC on thread: Solved: Re: RevProc 2021-48 Statement to be attached for f... - Intuit Accountants Community
I found the statement (for 1120S) on Schedule K just below Line 16 b (QuickZoom here to required PPP loan forgiveness statement to report tax exempt income)
Thank you. I had found that button in my travels to get the M-2 to balance as per the IRS instructions. After a hour and a half on the phone with support, she basically said the program will not post anything to line 3 column a unless it is a separately stated item on the K-1 (which would create income for the shareholder and not the fix the IRS dictates) so I had to uncheck the auto calculation of the M-2 from the worksheet and enter everything manually straight to page 3 of the K-1 and the Schedule M-2. Not sure what I am paying this crazy amounts of money for the software to enter things manually and to balance myself but I am...Someone dropped the ball on this one.
@sagarcpa wrote:
enter things manually and to balance myself but I am...Someone dropped the ball on this one.
Intuit "dropped the ball" on A LOT of things. You may consider other software next year.
You have clicked a link to a site outside of the Intuit Accountants Community. By clicking "Continue", you will leave the community and be taken to that site instead.