How is EIDL Advance reported on 1120S?

[JamesG1]

You are correct.  16(A) for 1120S.  Sorry.

Yes, expenses paid with the grants are deductible.

EIDL Advances Are Not Taxable; Expenses Paid Are Deductible

The new stimulus law provides that the EIDL advances are not taxable income. And otherwise deductible business expenses paid with EIDL advances are tax-deductible.

My understanding is that CA is taxing the EIDL advances so it may be possible to show a profit to CA but a loss to Federal.  This states:

The FTB has just clarified that EIDL (Economic Injury Disaster Loan) advance grants are taxable to California. 

[mlococo]

Hi, where are the things to do? Where is your ***UPDATE*** I looked for it all over, but did't find UPDATE. 

[Mvance123]

I've gone to the "forms" and there is not an option for "Form 112OS "? I'm using Turbo Tax Home & Business 1040 form.  Where would I record the following: PPP loan, which has been forgiven (I believe I wouldn't have to report this since it has been forgiven?) , my EIDL loan and the $1000 Grant money.  I understand they are not part of taxable income but I'm sure I still need to report them? Unfortunately the IRS nor TurboTax offer good  direction on this subject. 

Appreciate any help I can get, only have today to get this finished and submitted.   

[Critter-3]

@Mvance123 

The 1120-S is prepared using the TT BUSINESS program and NOT the Home & Business which is why you don't see a place for it anywhere.     So are you trying to prepare the S-Corp return ?  

[Anonymous]

Thank you for the reply re 1065.  We are a 2 person LLC who report on a 1065 with Schedule K's.  I understand the EIDL is not income.  How do I treat and report the interest we have paid on the EIDL?  Thank you.

[PatriciaV]

Interest on an EIDL is a deductible business expense, similar to other interest paid by your partnership.

In TurboTax Business, you'll find this under Federal Taxes >> Deductions >> Common Business Expenses >> Interest Expense.

@Anonymous

[Anonymous]

Thank you!