PPP loan forgiveness

[rbell2315]

How do I enter PPP loan forgiveness on the Balance Sheet of an S Corp and how do I enter it in the program?

[IRonMaN]

But if a loan is forgiven, why would it go on the balance sheet?  It is book income to the business and nontaxable for federal tax purposes.

[dascpa]

Other Income on the book's P&L and M-1 adjustment on the tax return - income reported on books but not taxable.

[TaxGuyBill]

But from what I understand, that amount still increase the shareholder's Basis.  Can somebody confirm that for me?

If that is the case, where is it entered so the 'adjustments to Basis' shows up on the K-1?

[sjrcpa]

Confirmed.

Not being a ProSeries user, I don't know.

I gave the Lacerte answer here https://proconnect.intuit.com/community/lacerte-tax-discussions/discussion/can-and-how-to-input-ppp-...

[IRonMaN]

There is an area on the ProSeries schedule K worksheet for other tax exempt income that affects shareholder basis.  I would assume that would be its final resting place but I haven't tried it to see what happens.

[TaxGuyBill]

Ah, thank you!

[IRonMaN]

You betcha!

[VYASVYAS33]

where to entered ppp loan on s-corp tax return & selp-employed sch"c" on proseries = what about expenses claimed - for ppp forgiveness = can we claimed on i-tax 2020 

[qbteachmt]

Enter: https://proconnect.intuit.com/community/business-income-taxes/help/how-to-enter-forgiven-ppp-loans-i...

The expenses are deductible. (fixed)

[TaxGuyBill]

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@qbteachmt wrote:

If and when the loan is Forgiven, the expenses are deductible.

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The expenses are deductible regardless if the loan is forgiven or not.   😁

[sjrcpa]

Except for some states.