@mcd8
You report the forgiven PPP loan as non-taxable income.
In TurboTax Business for a partnership:
- Under Your reconciliations and balance sheet, click on Edit to the right of Income reconciliation.
- PPP loan forgiveness will be a reconciling item on the M1 under Permanent items (tax exempt income).
- The K-1 and M1 / M2 calculations should report correctly. There may be other issues in your tax return that would cause the forms to be out of balance.
States vary on their treatment. This document will quickly be outdated as states and state departments of revenue respond to IRS conformity issues.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
