Hello there -
I am am self employed in Ca, had a PPP loan in 2021 during the extension period March-June, and it was forgiven in full. Now, for Federal purposes, I understand I only have to click through the questions that allow me to produce form 4197 to report it.
Now California does not conform, means my PPP loan is now taxable income. However, I do qualify for the 25% gross receipt rule. What does that mean for my entry in Turbo tax? Originally, I thought I had to use the PPP-deduction add back with the full loan amount. But that seems wrong because I AM allowed to do the deduction. I do seem to need to report the ppp loan as income. How does my TT input look to display this scenario?
