PPP loan

[kabbabkkg]

Has anyone had to deal with the PPP Loan that some companies received?  I know that the loan itself is not taxable but do you show it somewhere if it is on a Sch C income company?  And the expenses for this particular client all the PPP was used for was to pay workers.

Thanks

[sjrcpa · Accepted solution]

Most of us have.

It goes nowhere on Schedule C. Schedule C reports taxable income only.

At the federal level all the expenses are deductible. Your state may have a different treatment.

If it was forgiven in 2021, or if you're treating it as forgiven in 2021 you have to attach a statement to the return.

[kabbabkkg]

Need to add to the question what if it was a small company and they got a loan that was forgiven and it was used to pay the owner operator who is the only one in the company?

[sjrcpa]

Then I think you just complete the statement about the PPP Loan Forgiveness.

[qbteachmt]

"and it was used to pay the owner operator who is the only one in the company?"

Use to pay workers = fine.

Used to pay the owner = fine.

What happens is, they Applied. As long as they used the funds as applied for and as permitted, it is fine.

Do you have some specific concern?

[kabbabkkg]

No no special concerns just making sure.  No I have to find where to do the statement

[khorshed]

The statement is PS professional only, From the top menu choice Forms & search PPP loan stmt