topic Does TT Business handle PPP loan forgiveness? in Business & farm

Does TT Business handle PPP loan forgiveness?

jnhajjar — Fri, 26 Feb 2021 01:42:06 GMT

How is PPP loan forgiveness handled on turbo tax business

Re: Does TT Business handle PPP loan forgiveness?

ColeenD3 — Sat, 06 Mar 2021 22:06:11 GMT

Please see this answer from ThomasM.

If you think the PPP loan will be forgiven, then you won't report it as taxable income in TurboTax. You would report it on line 16(a) of Schedule K as Other Tax-Exempt Income if you are filing a form 1120-S. It would go on line 18(b) on a Schedule K for form 1065. It would appear on your financial statement as either loan payable or other income, so there may be a reconciliation issue if you report your balance sheet on your tax return. This may be aided by the entries in Schedule M-1 and M-2 in TurboTax and on your corporate income tax return.

Re: Does TT Business handle PPP loan forgiveness?

jnhajjar — Sat, 27 Feb 2021 21:42:50 GMT

Thank you very much Thomas.

Very helpful

Re: Does TT Business handle PPP loan forgiveness?

LTDT — Tue, 02 Mar 2021 02:23:28 GMT

When I enter like Thomas said, I can’t her taxable income to work. It doesn’t reduce taxable income

Re: Does TT Business handle PPP loan forgiveness?

trungson — Tue, 02 Mar 2021 02:34:52 GMT

Are there instructions for 1120? (not 1120S)

Thanks

Re: Does TT Business handle PPP loan forgiveness?

ToddL99 — Sat, 06 Mar 2021 23:08:56 GMT

For a C corp, if the PPP was not forgiven as of 12/31/20, it remains on the balance sheet as a liability.

If it was forgiven as of that date, then needs to be entered as a book/tax reconciliation on Sch M-1, on line 7 with a description PPP loan forgiven on "date" (xx/xx/xxxx). It will appear on the books as Other Income and be part of the P&L.