Question

Where does the PPP forgiveness amount appear on a K-1?

Forum|Forum|4 years ago
April 5, 2022
1 reply
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I have prepared four 1120S using Turbo Tax. Two of them kept receiving an error regarding Schedule M-1. The two with this error had nothing on Schedule K-1, 16 B, but the two without the error had the PPP forgiveness amount there. Which one is correct?

TurboTax Online

J

JamesG1

I am not able to view the tax returns. Did all four tax returns report forgiven PPP loans?

If so, PPP loan forgiveness is rightly reported on IRS Form K-1 (1120-S) in box 16 code B.

On the IRS Form 1120-S, PPP loan forgiveness is reported as tax exempt income on the Schedule M-1 under Other permanent income items.

In TurboTax Business, under Federal Taxes / About Your Business, you are asked to report forgiveness for a PPP loan at the screen Forgiven PPP Loan.

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