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39.3. How to Enter a Loan Made Forgiveness Transaction

When entering a Forgiveness transaction on a Loan Made, there are two steps required.

1) You must enter a standard Forgiveness transaction by going to the Loan Made transaction, selecting Loan History, and then Forgiveness from the bottom of the screen.

2) However, in addition to the Loan Made being reduced, California wants to see another transaction on the report to balance out the cash. Depending on the nature of the Loan Made, there are different ways to enter this transaction.

If the filer makes a loan out to a candidate committee, and then forgives that loan, technically the expense needs to pull as a contribution to that committee since in effect it is a contribution, so you will need to create a contribution for the amount of the Forgiveness on the date the Loan was forgiven.

If you made a loan to say, a campaign staffer to pay for housing, and forgave that loan, that loan would need to show as an operating expense. Enter is at a normal expense to that staffer, and enter the explanation (forgiveness of Loan Made etc) in the Reporting Description field.