For an entity (S corp in my case) that does not meet the 25% reduction in gross receipts test to deduct the expenses used for PPP loan forgiveness - CA wants the 'specific' expenses reduced (i.e payroll, rent, etc). I see where lacerte has the entry on screen 13 (s corp) to enter expenses nondeductible to state related to a forgiven PPP loan - I guess this is the only option?
https://www.ftb.ca.gov/forms/2020/2020-100s-booklet.html
Paycheck Protection Program (PPP) Loan Forgiveness. Under federal law, the Consolidated Appropriations Act, 2021 allows deductions for eligible expenses paid for with covered loan amounts that would be or would reasonably be expected to be forgiven under the PPP. California law does not conform to this federal provision. If eligible expenses were deducted for federal purposes, include this amount on line 7.
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