PPP Loan, Ultratax, and 100S

Technical topics regarding tax preparation.
#1
Andrew  
Posts:
806
Joined:
21-Nov-2018 5:00pm
Location:
CA
Client received a $9,000 PPP loan but doesn't qualify for deducting the expenses on the CA 100S. The $9,000 shows up on page 1 of the 100S on line 7 Other additions. It shows up on the K-1 as non-deductible expenses, line 16c. When importing the K-1 into the 1040/540, there doesn't seem to be an adjustment. The $9,000 shows up as non-deductible expenses but net income for CA doesn't reflect that. Calling TR support for second time but not found any help yet.

Or maybe I have to manually make an adjustment on screen CA adjustments? If you use different software, how has your software handled this?
 

#2
lucyko  
Posts:
933
Joined:
27-Jul-2014 10:19pm
Location:
Orange County,CA
Just to confirm, during 2020 your client did not have any of the 4 quarters where the gross revenue was 25 % lower than comparable quarter in 2019 . is your client on an accrual basis or cash ?
 

#3
Andrew  
Posts:
806
Joined:
21-Nov-2018 5:00pm
Location:
CA
Thanks. It's not entirely clear to me why you're asking these questions.
 


Return to Taxation



Who is online

Users browsing this forum: ajt1970, Anderly, CaptCook, Coddington, eric1032, golfinz, Google [Bot], Google Adsense [Bot], HowardS, ImposterTax712, JAD, JoJoCPA, JR1, lckent, wallbobbyc and 192 guests