Reporting EIDL Loan (not grant) on 1120-S

Forum|Forum|4 years ago
April 22, 2021
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I received a $150,000 EIDL Loan from the SBA for the S-Corp. Does anyone know where to report this amount on Form 1120-S?

TurboTax Business Windows

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 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.

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macrorepublicAuthor

This is pertaining to the EIDL Loan, not PPP Loan. Should I treat the EIDL Loan the same as PPP Loan and report the EIDL Loan amount on line 16(a) too?

DanielV01

Employee

The EIDL loan (which you will pay back), will not be reported in Box 16a because it is not income. It is, rather a company liability which increases your basis in the company. Interest payments on the loan will be business expenses, whereas payments towards the principal will reduce the liability and your corresponding basis.

The PPP loan should also be reported as a company liability until the year it is forgiven. Then it becomes nontaxable income as @ThomasM125 mentions above.

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