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Level 1

How do I record a PPP loan in Quick Books Self Employed?

 
8 Comments
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QuickBooks Team

How do I record a PPP loan in Quick Books Self Employed?

Hi, Sauceman58.

 

Thanks for joining the QuickBooks Community, I'm here to help.

What you'll want to do is credit the stimulus check as a liability, you can name it whatever you want, that way you'll remember exactly what it is. You'll want to set it up as a short- term liability, if you know it'll be forgiven, since the life of the loan is only 8 weeks. If you think a small portion may not be forgiven, due to reasons such as not rehiring enough full time employees, you set it up as a long term liability.

 

Keep in mind to record it in the name of the bank you received it from, you're paying back or being forgiven by your bank, not the SBA. Also keep an eye on this IRS fact sheet. It will provide more information to know about the PPP loan. If you have any questions feel free to reply below.

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Level 1

How do I record a PPP loan in Quick Books Self Employed?

This is great. I cannot be the only 1099'r that has these questions. Please consider pushing out more info on how to post transactions in QBSE because we all need help!

 

Thanks,

 

mls

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Level 1

How do I record a PPP loan in Quick Books Self Employed?

What category do I use for the loan in transactions?  I need to be able to sort this easily when I report this to my accountant since the PPP loan cannot be deducted from my taxes. I wish you could create an PPP category--please? 

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QuickBooks Team

How do I record a PPP loan in Quick Books Self Employed?

Hi there, @LeslieK26

 

Thanks for posting your question here in the Community. 

 

Before going into detail, please note that each business has a unique setup, so I recommend consulting with an accountant before using any of these solutions.  

 

If you have received the loan funds and they show as income on the Transactions menu, you'd simply mark the transaction as Business. 

 

When it comes to tracking loan payments, I suggest checking out this Categories in QuickBooks Self-Employed, which breaks down all the available expense categories such as Business Loans and Business Loan Payments.

 

Feel free to comment below if you have any more questions. Have a good rest of your day!

 

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Level 1

How do I record a PPP loan in Quick Books Self Employed?

Thank you.  I am a sole member LLC and use schedule c.  So if my ppp loan came into my QBSE what happens when it is forgiven?  How do I document that

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QuickBooks Team

How do I record a PPP loan in Quick Books Self Employed?

Hello, jmm333. 

 

Thanks for stopping by the QuickBooks Community. There's a few things to keep in mind on your PPP loan that are required in order to be forgiven.

  • Use the funds within an 8-week period after your lender sent you the funds
  • Use 75% or more of the funds on eligible payroll costs
  • Use up to 25% of funds on other eligible business costs

Keep an eye on this article. It highlights the points above as well as touches on factors that might keep you from receiving forgiveness. 

 

- Paycheck Protection Program loan forgiveness

 

You also mention that you're a Schedule C filer. That being so, you'll definitely want to check out the article above as it contains info pertaining specifically to you. 

 

If there's any other way I can help in the meantime, please post below. 

 

Thank you for your time and have a nice afternoon. 

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Level 1

How do I record a PPP loan in Quick Books Self Employed?

Should it be marked as business income, or business loan?

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QuickBooks Team

How do I record a PPP loan in Quick Books Self Employed?

Thank you for joining the thread, @justink101.

 

I can see that this is a duplicate post here in the Community forum. My colleague @ReyJohn_D has already answered your question from the other thread.

Please refer to this link for the recommendation: https://quickbooks.intuit.com/learn-support/en-us/ffcra-and-cares-acts-including-the-ppp/re-i-just-r....

 

As always, feel free to read the topics from our help articles in case you need additional guides while working with QuickBooks in the future.


Come and visit us again if you have other questions. I'm more than happy to help. Keep safe always, @justink101!

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