PPP Forgiveness and 1040 Form 7203 (Shareholder Basis)

[cschaffer]

My Schedule K-1 shows the forgiven PPP Loan amount in space 16B of "Other Tax Exempt Income". everything I have read states that it does affect your shareholder stock basis. The new Form 7203 has a space for K-1,line 16A but NOT for line 16B. How do I record this?

[PatriciaV]

Enter the total of Schedule K-1 Line 16 A and B in Form 7203 Line 3k.

According to the IRS Instructions for Form 7203 Line 3k:

"Enter the sum of the amounts from Schedule K-1 (Form 1120-S), box 16, codes A and B."

[cschaffer · Accepted solution]

Thank you for responding to my question. I see my form states to place amount from Box 16 A on line 3k. I appreciate your clarification.