Hawaii nondeductible expenses related to a forgiven PPP loan in S-Corp

Forum|Forum|5 years ago
April 19, 2021
1 reply
14 views

As of today 4/19 Lacerte has not updated Screen 13 to allow entry of nondeductible expenses related to a forgiven PPP loan. I cannot enter a deduction and have it source only to the state. Any suggestions on a work-around?

Lacerte Tax

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T

TylorValdez1

Level 6

That entry field is only for states that do not conform to the Consolidated Appropriations Act (P.L. 116-260), signed into law on December 27, 2020. Hawaii does conform. https://files.hawaii.gov/tax/legal/tir/tir20-06_rev.pdf

J

JLA - KauaiAuthor

Level 3

Aloha,

The problem is the non-deductibility of the expenses.

Per Hawaii Dept of Taxation

https://tax.hawaii.gov/upd_4txpayr/

Adoption of Federal Tax Provisions

We are unable to provide any definitive guidance on conforming to the federal provisions until the Legislature successfully passes legislation. This would include:

Provisions for the exemption of the first $10,200 of unemployment compensation
Allowing PPP expenditures to be deductible when the PPP loan was forgiven

Any bill passed by the Hawaii State Legislature automatically becomes law by July 6th with or without the Governor’s signature, provided the Governor does not veto the bill.

T

TylorValdez1

Level 6

All you need to do is enter deductions like you traditionally would on screen 15. No other entries are required as far a sourcing goes for HI.

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