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Level 2
posted Sep 30, 2022 11:53:55 AM

form 1065 k1 - should PPP loan forgiveness/revenue included in box 1(and 14)?

Hi, I had a PPP loan forgiven in 2021, and that revenue is included in my K1 (prepared by a CPA) under :

Box 1 and 14: : includes the PPP revenue

Box 18B: shows the PPP revenue as tax exempt income.

Despite Box 18b being properly filed, it seems that TT  includes the PPP forgiveness in  my revenue, and does not take into account the exemption status of PPP.

Should then box 1 include the PPP revenue ? Not including it under box 1 (and 14) should be the only way not to pay taxes on it through TT, but I am surprised as it would imply our CPA prepared the K1 incorrectly. Thank you so much for your help.

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2 Replies
Level 15
Sep 30, 2022 3:57:08 PM
Level 15
Sep 30, 2022 4:01:23 PM

Go back to the CPA... the PPP loan is NOT income and should not be included as such on the 1065 return.