Proceeds from the PPP loans are not taxable income but you can deduct the expenses.
When you receive the proceeds from the PPP forgiveness, your debit should have been to cash, and your credit should have been to a nontaxable income on your income statement.
When you paid any expenses from the PPP funds, you would have had a debit to the applicable expense account and a credit to cash.
Please see the attached links for more information on PPP forgiveness.
PPP Loan Forgiveness discussion
PPP tax implications
@beavic1958
@SCraigatHMG
[Edited 03/02/2021 | 7:31AM PST]
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