Schedule C PPP Loan Forgiveness

[markk2213]

Where on the Schedule C do I pick up the PPP Loan forgiveness.

I entered all of the busisness expenses and all of the business income I received netting to a negative number.

I received PPP forgiveness which when added to the loss reduces the loss.

Do I record the PPP as income of do I create a negative expense for the PP forgiveness abd reduce my expenses?

[Critter-3]

The PPP is NOT income and as such is NOT entered anywhere on the Sch C and neither is the forgiveness.  It is like it never happened so says the rules.

[markk2213]

Thank you

[ACCT_101]

I understand better with case and point so could you help with this scenario?

In 2021 my business gross receipts were $100,000 and I also have PPP forgiven loan of $100,000.  In the same year, my business had expenses of $60,000 in payrolls and $40,000 in rents and utilities.  Would my schedule C show 0 or $100,000 gain?  Thank you for any input you may have.  

[JamesG1]

$0.  PPP tax exempt income not reported on Schedule C.  This TurboTax Help states:

A forgiven PPP loan is tax-exempt, meaning it does not cause you to recognize a taxable gain or income. The IRS has clarified that expenses paid for using forgiven PPP loan proceeds are still deductible as well.

Gross receipts $100

Payroll               $60

Rents                 $40

Net                     $0