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Level 1
posted Feb 15, 2021 2:31:19 PM

ppp not forgiven but cash basis

how do I report the ppp not forgiven yet at 12/30/20 on a cash basis accounting.  loan is $60,000 and expect to be forgiven.  Company has no other debt or payables.

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1 Best answer
Expert Alumni
Feb 16, 2021 8:13:12 PM

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 if you are filing a form 1120-S. It would go on line 18(b) on a Schedule K for form 1065. 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.

 

 

6 Replies
Expert Alumni
Feb 16, 2021 8:13:12 PM

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 if you are filing a form 1120-S. It would go on line 18(b) on a Schedule K for form 1065. 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.

 

 

Returning Member
Mar 6, 2021 8:18:54 PM

Hi,

  I am using turbo tax business edition.  I am filing under S Corp. I was wondering if you know where can I put down PPP loan amount under line 16(a) for schedule K?  Thank you

Level 1
Mar 13, 2021 2:43:43 PM

I am unable to locate the Schedule K in Turbotax business. Any help?

Expert Alumni
Mar 15, 2021 1:14:56 PM

What type of return are you preparing- partnership, S-corp, estate or trust?

Level 1
Mar 15, 2021 1:26:27 PM

I'm preparing an S-Corp return. The IRS and advice here tell me Schedule K line 16b, but I find no Schedule K.

Expert Alumni
Mar 15, 2021 1:44:11 PM

Schedule K of Form 1120-S is located on page 3 of the Form 1120-S.

 

See the attached screenshots to see what it looks like in the program and an actual picture of the page itself.