Solved: How to Report PPP Loan on 1120-S / Balance Sheet?
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
Level 2

How to Report PPP Loan on 1120-S / Balance Sheet?

S Corp received roughly $35,000 in PPP loans in 2020, and no repayments have been made (deferred for 2 years). The business has not yet applied for forgiveness, but anticipates 100% forgiveness. In addition, Congress passed into law the ability to fully deduct expenses paid by forgiven PPP loans, but not sure if that is relevant in this case.

 

How/Where should this PPP loan be reported on Form 1120-S / Balance Sheet?

1 Best answer

Accepted Solutions
Level 15

How to Report PPP Loan on 1120-S / Balance Sheet?

Clearly you have an increase (debit) in cash on the asset side and need to increase (credit) a liability account on the liability/shareholders' equity side (most likely notes payable in one year or more or other liabilities).

View solution in original post

4 Replies
Level 15

How to Report PPP Loan on 1120-S / Balance Sheet?

Clearly you have an increase (debit) in cash on the asset side and need to increase (credit) a liability account on the liability/shareholders' equity side (most likely notes payable in one year or more or other liabilities).

View solution in original post

Level 1

How to Report PPP Loan on 1120-S / Balance Sheet?

I have a similar problem.  My loan was granted and forgiven in calendar year 2020 so I consequently do not have any long or short term debt.  I'm not sure how to categorize the loan deposit on the income side or how to handle the funds on the balance sheet.     

Level 1

How to Report PPP Loan on 1120-S / Balance Sheet?

Same issue.  Following this thread.

Employee Tax Expert

How to Report PPP Loan on 1120-S / Balance Sheet?

You deposit cash for the loan amount when you receive it and credit other income if you believe the loan will be forgiven. When you complete your tax return, you complete schedule M-1 that will reconcile your book income to the income reported on your tax return. Those adjustments will flow down to schedule M-2, which will reconcile your equity as reported on your financial statement to that reported on the tax return.

 

 

 

 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic Ads
v
Privacy Settings