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PPP Forgiveness Other Income Figure on Form 1120S

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The Consolidation Appropriations Act of 2021 was signed into law on December 27, 2020 and explained that PPP loans that are forgiven are excluded from a client's income. However, this new law did not include gross income that would otherwise arise from the forgiveness of a PPP loan.

May 25th 2021
Managing Editor
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As part of our ongoing effort to address reader questions on issues that impact their professional lives, or that of their clients, we established our Ask AccountingWEB effort. Here, we accept queries from other accountants that wish to have our contributing topic matter experts answer in as much detail as they can.

Sometimes the questions posed are topics that can be addressed in a pointed article or series of articles, while others are being answered in video format and some visual details.

Recently, a reader asked us what to do with the "other income" figure (PPP Forgiveness) on IRS Form 1120S. One of our regular contributors, EA Susan Tinel, CEO of the firm April 15 Taxes Inc. in San Diego offers a detailed response.

See the video below, we hope that if you had a similar query on this issue it answers it for you in full:

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