@ColeenD3 Thank you for your insights regarding the M-1 and Form 1120-S entries to account for 2020 PPP Loan Forgiveness. After completing these steps, the Schedule K-1 still seems to reflect the non-taxable loan amount on Line 1 of the K-1 Schedule (i.e., Ordinary Business Income includes the full PPP loan amount). Is this correct? If yes, where should the non-taxable amount listed on K-1 Line 16b be reduced from taxable / gross income on the Shareholders 1040?
