Hi,
I hope some tax professionals can help!
After hours of investigation on how to report forgiven PPP loan and EIDL advance on 1120S, I am about to finalize 1120 S.
In my case, I am single owner/employee S.Corp. I have $10,000 for forgiven PPP loan and EIDL.
First off, on my balance sheet, my retained earnings got increased by $10,000 and this retained earnings is the same as shareholder stock basis.
Move on 1120S.
Schedule B line 12: Yes, $10,000
Schedule K line 16b other tax exempt income: $10,000
Schedule M1 line 5 a: enter "Forgiven PPP loan/EIDL advance" $10,000
Schedule M2 Line 3 (d) OAA : $10,000
Line 8 (a) and (d) is the same as retained earnings.
Schedule K1 : box 16 code B $10,000
Please advise me if I did wrong. Thank you very much!
