100s PPP AB80 adjustment

[cl54]

I am having a issue where I can't get my balance sheet to balance to the retained earnings form the CA adjustment.

2020 loan forgiven in 2021, I listed in under the income screen (ppp non deductible) which carries it to Line 7 page 1 of 100S all good, the M-1 has the add back for the adjustment, all good, however my AAA account is not reflecting the full taxable income for CA.  My balance sheet is off by the PPP loan amount so retained earnings is only the ordinary income and not the full taxable income on the CA side

I spent 2.5 hours on the phone yesterday with Lacerte absolutely no help he didn't have a clue what he was doing!  Has anyone been sucessful getting this to work?  I know we don't elimate the loan till 2021, but they should be basis for the increase of income which should flow to retain earnings!

Thank you

[George4Tacks]

Does this help? https://proconnect.intuit.com/community/diagnostics/help/how-to-apply-california-ppp-and-eidl-confor...

Is the an ELIGIBLE entity under AB80?

[cl54]

George no lol that doesn't work, they did not meet the 25% test, It flows to the M-1 but I can't figure out how to make the balance sheet balance, when I add back other adjustment to the M-1 line 5 it actually goes to retained earnings to OAA not AAA, and then my liabilties are overstated by the PPP loan amount, I have spent hours trying to rework this!  I obviously am missing something lol

[George4Tacks]

Honestly, I have not done a return like this, so this is just an exercise for me. Screen 13, 2nd section enter the first two items - Total PPP and Expenses nondeductible. 

That seems to do the job.