Notice 2014-7 for S-Corp

[THL2]

Hi!

TP is a sole proprietor providing home care services and was previously showing and excluding the income in his Schedule C using the instructions from Q14 https://www.irs.gov/individuals/certain-medicaid-waiver-payments-may-be-excludable-from-income

The business was approved as an S-corp in 2024 but the situation is still the same - owns only 1 home and he lives with the patients in that home. Does Notice 2014-7 still apply and can he exclude the income similar to how it is done on Schedule C? 

Assuming it does and 100% of the income is excludable, can he claim operating expenses resulting in net losses?

Thank you!

[Terry53029]

Only the W2 wages of the owner would be excluded, as an entity does not live in everyone's home nor care for anyone. Just my thoughts, and I have not researched whether 2014-7 applies to corps. doesn't seem to me that it would