ocdtax wrote:Help needed, please!
If PPP1 was forgiven in 2021 and PPP2 was forgiven in 2022, do I:
1) Leave PPP2 loan on the books until 2022 because that is how we accounted for PPP1 (RP 2021-48, 3.01(3))
or
2) Can there be separate RP 2021-48 statements for each PPP loan so that we could recognize the tax-exempt income for PPP1 under 3.01(3) and then recognize the tax-exempt income for PPP2 under 3.01(2), both on the 2021 tax return?
Anyone know?
I have the same situation for several clients, 2020 no income recognized and it was still on BS at 12/31/20, forgiveness in 2021 for loan #1. On 2021 return, I'm preparing the statement as (3) income when forgiven for PPP #1. I could choose #2 as well for TY21 for loan 1.
However for loan #2 (received in 2021) forgiveness applied for in 2022. While I could choose rev proc (1) to treat as income when expenses incurred ie in 2021, Lacerte won't allow me to do two statements for the same tax year. Accordingly since I intended to treat it as a loan until forgiven in 2022 I'll report this as income in the TY22 return using rev proc (3) when forgiven for PPP #2. I am assuming there will be a statement for this in the TY22 returns.