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Data entry for Paycheck Protection Program (PPP) loans for corporations

PPP loans included in book income and Schedule M-1 prints

  1. Go to the
    Mc
     or
    Ms
     screen in the
    Balance Sheet
     folder.
  2. Enter data in the statement window attached to the
    PPP loan forgiveness
     field.
  3. For an S-Corporation, enter expenses in the
    Current year expenses paid from forgiven PPP loans
     and/or the
    Prior year expenses paid from forgiven PPP loans
     fields in the
    Ms
     screen.

Data entry reporting

  1. Forgiven PPP loan proceeds is reported on Schedule M-1 as income on books not on return.
  2. For an S-Corporation, forgiven PPP loan proceeds is also reported on:
    1. Schedule K, line 16b
    2. Schedule K-1, Box 16B
    3. Shareholder’s Basis Worksheet, Page 1, Line 7
    4. Schedule M-2, line 3(d)
  3. For an S-Corporation, both current-year and prior-year expenses paid with proceeds from forgiven PPP loans are reported on Schedule M-2, lines 3(a) and 5(d).
  4. A required statement based on the data entered in the
    PPP loan forgiveness
     statement window.

PPP loans not included in book income

No data entry is needed on the
Mc/Ms
 or
M3-2/M3S-2
 screens since the forgiven PPP loan proceeds isn't taxable income. The Book/Tax reconciliation item isn't needed if the forgiven PPP loan proceeds isn't included in the book income.

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