I am using TT 1065 for my LLC partnership. I received $15,000 PPP loan that was forgiven. All $15,000 were used to pay the partners income.
In schedule M worksheet, I entered Permanent Tax Exempt Income $15,000.
My question, where should I enter the $15,000 income to the partner? Normally, payments to partners entered as distribution. However, recording it as distribution will be passed to K1 as taxable income to the partners. If I enter it as payroll expenses, TT ask me to issue W2.
Thanks for any suggestion.
