I think forgiven PPP loan should be entered on Schedule M-2 line 3 (d) other adjustments account as well.
I am not sure about "5. On the Shareholder's Basis Worksheet, Page 1, Line 7." this is for loss item/non deductible expenses. If you enter PPP loan amount on line 7, your stock basis will be decreased by PPP loan amount.
I understood Stock basis should be increased by forgiven PPP loan amount since it 's tax exempt income.
I am confused now about "5. On the Shareholder's Basis Worksheet, Page 1, Line 7."
Can you clarify further?
Thank you very much!
