Thank you. Just to clarify, I'm sure you meant 16(b) not 18(b) correct? Regarding 1120S.
Here is another thing I noticed.
I included the expenses I paid using the EIDL grant, with the rest of my expenses I incurred using my normal business income. This obviously will add up to a loss on the 1120S since the grant is not taxable income but the expenses paid with the grant are deductible. Correct?
Also, for those in CA, Turbo Tax added the EIDL grant on line 12 of side 2. This is for form 100S. CA sees the grant as taxable income, so now I am showing a profit and not a loss as I did on the 1120S. Would that be correct? I included the itemized deductions made with the grant on line 14 of the page "Other additions and other deductions".
