Program handling of PPP loan forgivness funds.

Forum|Forum|5 years ago
January 26, 2021
2 replies
26 views

Presently, the tax program appears to include the tax free PPP loan forgiveness funds in taxable income, which is carried over to Schedule K as ordinary income. Also, the PPP is carried to retained earnings and is included in a shareholders basis, and available for NOL utilization.

I'm not sure if the PPP treatment is correct. Appreciate any other comments on the subject.

Lacerte Tax

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IRonMaN

Level 15

I'm guessing it is treating it that way because that is how you entered it. In reality it is tax free income for federal and treated as a reconciling item between book and tax income.

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