S corporation return you may report PPP & EIDL on M1 as other Non-Taxable income Line 5 and on Sch K1 Line 16 Code B “other Tax Exempt Income”. ‘The K1 L1 reflex’s the Business Income (Loss) which will either show a reduced Profit or an increased Loss to the full extent of the PPP & EIDL Amounts, hence the Tax deduction for monies spent. In QB once Forgiven move off your BS into Other income on your P&L and leave off of your P&L or if you want to include it create an Other Income account named “ Non-Taxable PPP”
As to any categories that you may wish to write them off against is a personal choice as far as the Tax return yet if meticulously done can provide further support for any SBA inquiry as to the Forgivability of money expensed.
