The amount of tax-exempt income derived from the forgiveness of the PPP loan. UltraTax CS automatically includes the additional reporting statement in the electronic file when you enter the data in the statement dialog box attached to the PPP loan forgiveness field in Screen Mac or Ms. Taxpayers with tax-exempt income from forgiving a Paycheck Protection Program (PPP) loan must attach a return to their tax return for each year that includes such tax-exempt income in gross income. The instructions I sent you earlier are the expanded IRS guide on how to report the expenses used to obtain PPP loan forgiveness on Form 1120S, Schedule M-2.The program forgives the full amount of the principal of the loan up to the full amount used to pay eligible expenses, and excludes the forgiven amount from a taxpayer's gross income.
Similarly, taxpayers who report tax-exempt income from PPP loan forgiveness before the year in which the PPP loan forgiveness is actually granted should consider filing an amended return (or, if applicable, an AAR) for the year in which the income was reported tax-exempt if reported the amount of tax-exempt income is more than the forgiveness finally granted.
