Question

Forgive PPP loan in Turbo Tax

Forum|Forum|5 years ago
February 10, 2021
2 replies
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Do I need to report or record forgive PPP loan into Turbo Tax?

I do not see any PPP items in Turbo Tax

Employee

No you do not enter anything about a PPP loan on your tax return. That is a bookkeeping issue for you to keep track of.

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L

LTDT

The amount forgiven has to be included on the return, it becomes part of basis in the other adjustments account

T

ThomasM125

If you think the PPP loan will be forgiven, then you won't report it as taxable income in TurboTax. You would report it on line 16(a) of Schedule K as Other Tax-Exempt Income if you are filing a form 1120-S. It would go on line 18(b) on a Schedule K for form 1065. It would appear on your financial statement as either loan payable or other income, so there may be a reconciliation issue if you report your balance sheet on your tax return. This may be aided by the entries in Schedule M-1 and M-2 in TurboTax and on your corporate income tax return.

If you are filing as a sole-proprietor on a schedule C, you would not enter anything about the PPP grant, since you don't enter a balance sheet on your tax return if filing as a sole proprietor.

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