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CA Form 4197

Forum|Forum|4 years ago
May 13, 2022
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Taxpayer is an S Corp who had a 2020 PPP loan forgiven in year 2020. Does the S Corp need to prepare a Form 4197 with the year 2021 Form 100S?

Lacerte Tax

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Best answer by George4Tacks

When all else fails, read the instructions and see the Who Must File to see if it applies to this entity.

https://www.ftb.ca.gov/forms/2021/2021-4197-instructions.pdf

George4TacksAnswer

Level 15

When all else fails, read the instructions and see the Who Must File to see if it applies to this entity.

https://www.ftb.ca.gov/forms/2021/2021-4197-instructions.pdf

Answers are easy. Questions are hard!

Level 5

Thanks for taking the time to research this. I've read the instructions many times and feel the instructions aren't clear. The instructions say " report the total amount of deductions, credits,
exclusions, and exemptions related to certain trade or business activity for the
taxable year, as applicable." The deductions for 2020 were taken in 2020 so I would guess no Form 4197 needs filed in 2021 since there were no expenses for tax year 2021.