PPP Gross receipts - 25% reduction test - Spidell

PPP Gross receipts – 25% reduction test

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Message Board PPP Gross receipts – 25% reduction test

  • This topic has 1 reply, 2 voices, and was last updated 4 weeks ago by Lynn Freer.
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    • #315428
      Anonymous
      Participant

      Client has a K-1 with a PPP loan that is showing as other tax exempt income (loan was forgiven). This K-1 has no income/no gross receipts from CA. Is the 25% gross receipts test based on all the gross receipts for the partnership at the Federal level? Meaning, they would qualify to not add the PPP loan back as taxable income on CA if they had 25% gross receipt reduction at the Federal level (even though none of the gross receipts are apportioned/attributable to California)?

    • #315510
      Lynn Freer
      Participant

      It is the total income that must meet the 25% test

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