topic Schedule C PPP Loan Forgiveness in Business & farm

Schedule C PPP Loan Forgiveness

markk2213 — Sun, 21 Mar 2021 12:03:42 GMT

Where on the Schedule C do I pick up the PPP Loan forgiveness.

I entered all of the busisness expenses and all of the business income I received netting to a negative number.

I received PPP forgiveness which when added to the loss reduces the loss.

Do I record the PPP as income of do I create a negative expense for the PP forgiveness abd reduce my expenses?

Re: Schedule C PPP Loan Forgiveness

Critter-3 — Sun, 21 Mar 2021 13:40:27 GMT

The PPP is NOT income and as such is NOT entered anywhere on the Sch C and neither is the forgiveness. It is like it never happened so says the rules.

Re: Schedule C PPP Loan Forgiveness

markk2213 — Sun, 21 Mar 2021 14:54:29 GMT

Thank you

Re: Schedule C PPP Loan Forgiveness

ACCT_101 — Thu, 31 Mar 2022 12:23:46 GMT

I understand better with case and point so could you help with this scenario?

In 2021 my business gross receipts were $100,000 and I also have PPP forgiven loan of $100,000. In the same year, my business had expenses of $60,000 in payrolls and $40,000 in rents and utilities. Would my schedule C show 0 or $100,000 gain? Thank you for any input you may have.

Re: Schedule C PPP Loan Forgiveness

JamesG1 — Thu, 31 Mar 2022 13:05:10 GMT

$0. PPP tax exempt income not reported on Schedule C. This TurboTax Help states:

A forgiven PPP loan is tax-exempt, meaning it does not cause you to recognize a taxable gain or income. The IRS has clarified that expenses paid for using forgiven PPP loan proceeds are still deductible as well.

Gross receipts $100

Payroll $60

Rents $40

Net $0