My PPP Loan was forgiven in 2020. Do I enter the amount and check yes on Line 12 of Schedule B on Form 1120-S as a debt that was forgiven? It appears to be an information line only, and does not affect any other amounts. I believe the PPP Loan amount also is reported on line 16, code B of the Shareholder K-1 as non taxable income that affects shareholder basis. Is that correct? When I entered the PPP Forgiven Loan amount as Other timing Income item on the Schedule M-1, it balanced out my income tax/book diferences and also moved it to Schedule M-2 as an addition from the M-1 and as a negative Distribution to balance out the M-2 with my books. Everything appears to be in balance.
