Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Ask the Experts about Life Changes in 2021 >> Event happening TODAY!
cancel
Showing results for 
Search instead for 
Did you mean: 
mhammer
Level 2

SBAD TREAS 310 MISC PAY

My LLC received a SBAD TREAS 310 MISCEL PAY, aka a loan, from the USG as part of the covid relief in 2020. Where do I enter it on Form 1065 in Turbotax Business SW so my balance sheet reflects it?

1 Best answer

Accepted Solutions
MinhT1
Employee Tax Expert

SBAD TREAS 310 MISC PAY

Your balance sheet should balance without including that loan in the asset section.

 

The loan is not taxable and is not reported as income on form 1065.

 

In fact, the account entry when you received the loan is   Debit Cash at bank  and Credit Loans.

 

At year end, the loan remains unpaid and is reported as a liability. The cash at banks has been spent for business expenses and the balance at year end is reported on line 1.

 

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

View solution in original post

6 Replies
MinhT1
Employee Tax Expert

SBAD TREAS 310 MISC PAY

This SBA loan is reported on Form 1065 on the Balance sheet (Schedule L) in the Liabilities and Capital section on line 18 - All nonrecourse loans.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
mhammer
Level 2

SBAD TREAS 310 MISC PAY

Thanks MinhT1. That takes care of the liabilities portion of the balance sheet.

 

Where do I enter it in the Assets portion of the balance sheet?

 

Mark

mhammer
Level 2

SBAD TREAS 310 MISC PAY

Line 13 perhaps?

MinhT1
Employee Tax Expert

SBAD TREAS 310 MISC PAY

You do not enter the loan in the asset section. It is already included in your bank balance.reported as Cash on line 1.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
mhammer
Level 2

SBAD TREAS 310 MISC PAY

Line 1 is simply cash on hand at end of year. The amount of the loan is not included in line 1. The loan was used to pay a third party contractor and is not on hand at year end.

 

Also, the loan is excluded from taxable income per CPA guidance. So, It has to included in an untaxed, separate line item. Given the CPA's guidance, the question is where to include it as a separate asset in Intuit's 2020 Business Tax Form 1065, Schedule L Assets in order for the balance sheet "to balance"?

MinhT1
Employee Tax Expert

SBAD TREAS 310 MISC PAY

Your balance sheet should balance without including that loan in the asset section.

 

The loan is not taxable and is not reported as income on form 1065.

 

In fact, the account entry when you received the loan is   Debit Cash at bank  and Credit Loans.

 

At year end, the loan remains unpaid and is reported as a liability. The cash at banks has been spent for business expenses and the balance at year end is reported on line 1.

 

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

View solution in original post

Dynamic AdsDynamic Ads
Privacy Settings
v