PPP CA K-1 to 540 - Spidell

PPP CA K-1 to 540

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Message Board PPP CA K-1 to 540

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    • #305270
      Wendy Mortensen
      Participant

      Got the PPP expenses taxable on the 1120S side and it prints a CA K-1 with a line 10b other income with the loan amount. But when I import it into Ultra Tax the only place it puts the number is in the basis adjustment.

      Support says a) are you sure it adjusts on the 540? Then tell us where it should adjust on the 540 and we will figure out how to force it.

      So I’m thinking it’s an Other income reported on 1040 Sch 1 adjustment.

      Any other ideas?

      Maybe my understanding is wrong: This client doesn’t qualify for the AB80 so CA K1 business income should increase by the PPP loan (which was 100% forgiven in 2021)

    • #305305
      Gerald Weiss
      Participant

      I have the same issue with SBA 1122 loan payments which are tax exempt income (basis additona) for Fed but taxable CA. S K-1 has  on line 10b  other income which flows nowhere. So Drake allows CA Schedule CA adjustment on line 8f which I made a CA addition of the SBA 1122 loan payments. Then gets addtion to CA taxable income .

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