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?