Question

Where do I include RRF funds received on 1120?

Forum|Forum|4 years ago
March 28, 2022
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TurboTax Online

It is my understanding that RRF funds are tax-free federal grants and do not need to be repaid. That tells me two things: Tax-Free and Not a loan.

The federal government has already indicated that it will not regard forgiven PPP loans and RRF grants as taxable income. Both forms of aid were intended to help restaurateurs survive the loss of business from state governments' closure of dining rooms and social-distancing efforts by jurisdictions at all levels.

In summary, the RRF grants are not taxable and thus do not have to be reported on your Form 1120 as income.