+where do you enter a grant from the county government and a loan from the SBA in the tax forms

I have a loan from my the sba where do i enter it on the turbo tax s corp tax form

and i grant from my county government where do i enter this also

850

Expert Alumni

Apr 4, 2021 8:36:19 AM

Is the grant from the county government a COVID-19 related disaster payment? This analysis states:

The COVID-19 pandemic is a qualified disaster, so federal, state, and local government grants to individuals for COVID-19-related expenses are tax-free. This would include, for example, the $25 billion in new rental assistance authorized by the recent enactment of the new stimulus bill that was signed into law by the president on December 27, 2020.

In TurboTax Business for an 1120S, non-taxable income will be reported as a reconciliation item on the M-1 Worksheet. The income will be listed under Permanent Items (tax-exempt income).

A Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) has to be paid back. Loans that have to be paid back are not taxable income to the borrower and are reported as an outstanding loan.

Level 2

Apr 16, 2021 10:42:14 AM

From the analysis you linked:

3. COVID-19-related grants to businesses do not qualify as tax-free under the general welfare exclusion and are generally taxable, including state and local grants made under the CARES Act Coronavirus Relief Fund.

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+where do you enter a grant from the county government and a loan from the SBA in the tax forms