@Abe7
Correct, on the 1120S, income of $10,000 - expenses of $15,000 = loss of $5,000.
On an 1120S, report the $5,000 as non-taxable income on line 16(b). It will be reported as a reconciliation item on the M-1 Worksheet.
This article states:
EIDL Advances Are Not Taxable; Expenses Paid Are Deductible
The new stimulus law provides that the EIDL advances are not taxable income. And otherwise deductible business expenses paid with EIDL advances are tax-deductible.
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