No. The loan proceeds received through the Paycheck Protection Program (PPP) are not income and therefore not taxable income on the return.
Information provided by @Critter-3 is helpful as well:
- "In your books you will either :
- 1) count the loan proceeds as income and take the expenses you paid with it as deductible expenses like normal, OR
- 2) enter the loan as a loan on the books and once it is forgiven you must also reduce your expenses by the amount of the forgiven loan.
- Either method is correct as long as you are consistent in it's application ... option 1 is the easiest for most folks."
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