Are you referring to EIDL or some other grant?
A forgiven PPP loan is reported as non-taxable interest.
In TurboTax Business for an 1120S:
- Under Your Income, Investment Income, click Start / Update to the right of Interest and dividend income?
- At the screen, Tax-Exempt Interest, enter the forgiven PPP loan.
- The K-1 and M1 / M2 calculations should report correctly. There may be other issues in your tax return that would cause the forms to be out of balance.
This treatment allows basis to be correctly reported.
States vary on their treatment. This document may quickly be outdated as states and state departments of revenue respond to IRS conformity issues.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
