Do i report the ppp anywhere on the partnership form

[Tim1234]

do i report the ppp money anywhere on a partnership form?

[DianeW777]

No. The loan proceeds received through the Paycheck Protection Program (PPP) are not income and therefore not taxable income on the return.

Information provided by @Critter-3 is helpful as well:

• "In your books you will either :
  • 1) count the loan proceeds as income and  take the expenses you paid with it as deductible expenses like normal, OR 
  • 2) enter the loan as a loan on the books and once it is forgiven you must also reduce your expenses by the amount of the forgiven loan.  
    • Either method is correct as long as you are consistent in it's application ... option 1 is the easiest for most folks."

[Tim1234]

Hi

It's just my wife and I that are the partnership.  The IRS information page says to report it on Form 1065, Schedule K, Line 18B Other tax exempt income.

Very confusing.

[JamesG1]

It is very confusing.  DianeW777 has correct information above.

Did you receive one loan or more than one loan?  Was the PPP forgiven in 2020 or 2021?  If forgiven in 2021, in some cases, you had the option to report it as forgiven in 2020.  Did you report the PPP as forgiven in 2020?  Please clarify.

For background, Instructions for IRS Form 1065 refers to the PPP program on page 1, page 35 and page 43.