You're correct. The PPP loan is not taxable however the expenses you pay with the PPP loan are deductible on your income tax return. For example: your compensation.
The PPP loan is a bookkeeping entry. When you received the money, from your PPP loan, it would be a Debit to Cash and a Credit to Loans (liability). As you pay yourself, you would Debit compensation and Credit Cash.
The compensation expense would be reported on your Schedule C (Form 1040) at tax time.
For additional information, see What is the Paycheck Protection Program (PPP) Loan?
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