@sansho1
You will report the PPP funds received as income for your books and records; as you noted, you did received the funds (cash) and it needs to go somewhere.
Originally you would have debited cash and credited Triple P loan.
When the Triple P loan is forgiven, you will debit the loan account (to zero this out) and then credit income. You can call it "grant income" "Triple P income" "PPP income"; whichever language works for you.
This should balance out your balance sheet.
Then once this transfers to TT Business, then that is where you need to make the adjustment for the M-1. As stated previously, this adjustment is income reported on the books not on the tax return.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
