2020 Schedule C, self-employed how to report PPP received

[dermorgen]

So the work around is to declare multiple PPP loans, of different years, on a single line noted for just one year that is attached to a single social security instead of the business FEINS?

I'm sorry, I think it's clear Turbo Tax is still working on this.  I'm going to hold on and hope they update this issue.  Thank you for your help, regardless.

[pcs21]

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@JillS56 wrote:

Any statement should include the following information for each PPP Loan:

1. Your name, address, and ITIN or SSN;
2. A statement that you are applying or applied section 3.01(1), (2), or (3) of Rev. Proc. 2021-48, and for what taxable year (2020 or 2021) as applicable;
3. The amount of tax-exempt income from forgiveness of the PPP Loan that you are treating as received or accrued and for what taxable year (2020 or 2021); and
4. Whether forgiveness of the PPP Loan has been granted as of the date you file your return.

Write “RP2021-48” at the top of your attached statement.

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With respect to #4, which date is it referring to? Is it always referring to the 2021 tax return filing date. Or is it referring to the tax year (could be 2020 or 2021) and the corresponding filing date to which the loan may be associated with?

[ZoltanB45]

#4 is referring to the date this year's return was filed. If you file tomorrow it would be 2/18/22.

[confusedabouttaxes23]

@pcs21 @dermorgen 

Have they figured out a way to report 2 ppp loans in same year? I got first and second draw in 2021 and were forgiven in 2022. So have they fixed the issue? Also can I choose option 1 in the years expenses are paid. I got the loans on 2021 but applied for forgiveness in 2022 and got it in 2022. So can I choose option 1? Also does the expenses paid or incurred means paying yourself. For one draw I paid expenses and my self but another draw only myself. 

[SandL13]

Just want to confirm:

I received 2 PPP loans in 2020.  These loans were both forgiven in 2021.  I selected 2020 and that the loans were forgiven as of the date the return is filed.  Is this correct?

[JamesG1]

I think that you are saying that two PPP loans were formally forgiven in 2021 but you had already reported them as forgiven on your 2020 Federal 1040 tax return.  If that is correct, that treatment was allowable.

The Journal of Accountancy states:

Rev. Proc. 2021-48:  Timing issues

Rev. Proc. 2021-48 covers the timing of receipt of PPP forgiveness tax-exempt income. 

Taxpayers may treat such income as received or accrued when either:

• (1) expenses eligible for forgiveness are paid or incurred; 
• (2) an application for PPP loan forgiveness is filed; or 
• (3) PPP loan forgiveness is granted. 

The revenue procedure also describes adjustments that must be made on an amended return; information return; or, for certain partnerships, an administrative adjustment request, when a PPP loan is only partly forgiven.

[JustATomato]

Does anyone know how to add the RP2021-48 statement to Turbo Tax Home & Business desktop/download application?  I am not using the web version.

[amigoman]

I wish I had seen this post LAST year.  It would have saved a lot of time!

[blnielsen55]

I have been trying to get some information to report forgiveness of a PPP Losn on a 1120 S Corp. return. The messages I have seen are not clear and are not consistent. Can someone give me an authoritative explanation?