Where do we report a PPP and EIDL loan?

[MaryM428]

You do not report PPP loan or EIDL grant on your taxes.  They are not taxable..  You will need to include them in your bookkeeping entries, but not on your tax returns.

[dsprinting]

Hi there, I'm chiming in since my company (S-corp) received PPP ($72K) and a disaster loan of $50K, using TurboTax business, how do we offset the incoming PPP to outgoing payroll. The payroll is reported as an expense, but no incoming PPP?

We did receive a SBA EIDL (Economic Injury Disaster Loan) of $50K, how is this reported?

Thank you!

[ThomasM125]

If you think the PPP loan will be forgiven, then you won't report it as taxable income in TurboTax. You would report it on line 16(a) of Schedule K as Other Tax-Exempt Income. It would appear on your financial statement as either loan payable or other income, so there may be a reconciliation issue if you report your balance sheet on your tax return. This may be aided by the entries in Schedule M-1 and M-2 in TurboTax and on your corporate income tax return.

You would treat the EIDL the same if it is not to be paid back, otherwise you wouldn't report it except as a loan amount on your balance sheet.

You can deduct the expenses you used the payments for as you normally would. The expenses are deductible even though you may have received tax-free grants to pay for them.

[jjdopp]

Line 16 on the k-1 is foreign income.  LIne 18 is tax exempt income

[DaveF1006]

it depends. According to Super Turbo Tax Agent ThomasM125, in this link, these payments are not taxable. My question is, are you preparing a K in your business program and looking to expense them? If so, what type of business entity do you have? Is it an S-Corp or Partnership?

in addition, ThomasM125 is referring to reporting these as a schedule K in the business return.  Schedule K-1 is a form that is distributed to the shareholders to determine what they will report on their individual tax returns.

[dsprinting]

"you preparing a K in your business program and looking to expense them? If so, what type of business entity do you have? Is it an S-Corp or Partnership?"

Yes.

S-Corp.