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Grant received by c-corporation

Level 2

How do I report the grant received by c-corporation on 1120 form? is it taxable income for c-corporation?

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2 Comments 2
Level 15

What kind of grant?

In the absence of federal, local or state guidance exempting that particular grant, it is taxable.

I'd put it in other income.

Level 15

Someone will have had to submit a grant application, so someone knows what they applied for. They also know who was issuing the grant, and if that came from a public entity. Then, they also will know if that grant has a specific purpose, so that the expense is offset by that grant. Otherwise, once you know the info, you can search public info (such as the web) to find out more about the grant. Examples: Fisheries grants are in lieu of ordinary revenue and to offset foreign competition or some other impact, and is treated the same as what it replaced. But a health and safety grant, such as were issued during covid, might not be reportable since it was supposed to be spent on health and safety (ventilation, masks, etc).

"Level Up" is a gaming function, not a real life function.
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