I have this same question. In an LLC partnership, so our "salaries" are just distributed as profit via K1. The way the final rules of the PPP are set up, it almost looks to me like this money could be distributed to myself and my partner, isn't documented anywhere and has no tax liability? Our operating expenses were deductible, but our K1/net pass through income is ONLY Based off of INCOME minus EXPENSES. If the loan is never recorded as income, then it never shows up on the k1. Lucky loophole for us?
