It is not taxable income. EIDL advance is specifically excluded from tax. https://www.jpspa.com/consolidated-appropriations-act-effect-ppp-eidl/ The advance is reported in the same area as tax-exempt interest. So, it will need to be reported in M-1 under Permanent Income Items, so that it flows to Form 1065, Page 4, line 18b. for the Balance Sheet.
@wolfeshunt
[Edited 02/15/2021 | 1:45 PM PST]
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