You need to follow the same steps to enter non-taxable grant income to your equity reconciliation as Forgiven PPP funds. The process differs a little if you're filing an 1120S or a 1065.
To do this on an 1120S you need to follow these steps:
- Within your tax return, switch to forms mode using the Forms icon at the top right of the screen
- Click on Form 1120S p3-5
- Scroll down to the Schedule M-2 and enter "Restaurant Revitalization Grant forgiveness" and the dollar amount on line 3 column d
If you are filing Form 1065 please follow these steps:
- Within your tax return, switch to forms mode using the Forms icon at the top right of the screen
- Click on Form 1065 p4-5
- Enter the amount of your forgiven grant on line 18b
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