PPP and EIDL on a1120

[jprince1]

Where do you put the amount of the ppp loan and EID grant on the 1120S? My PPP loan is in review for forgiveness right now! no clue of what to do with the amounts?

[AmeliesUncle]

It is reported as tax-exempt income, and then an adjustment on the M1.

However, in my opinion every corporation should be using a tax professional.  Things are too complicated to do it yourself.

And with the tons of new coronavirus related tax laws, you REALLY should be going to a tax professional.

[jprince1]

Thanks for your response. My PPP loan is in the process of being forgiven. So in the turbo tax business edition software would I just enter the amount of the loans that were granted to me in other income and specify what they are?

[JamesG1]

The Paycheck Protection Program (PPP) was created by the CARES Act and has been a very complicated to follow in less than a year.  This TurboTax Help is useful.

Under certain criteria, and if you use the funds as directed by the SBA, the loan may be completely or partially forgiven.  .

Reported on an 1120S, it is reported as tax-exempt income and may require an adjustment on the M1.

[AmeliesUncle]

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@JamesG1 wrote:

  This TurboTax Help is useful.

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That article is out of date, and therefore has several major errors in it according to current tax law.  So that link is rather useless.