Was looking for answer all over the place, as TT doesn't even have a probe question about this. As everyone has mentioned, 1) forgiven PPP loan is not taxable and 2) expenses paid from it can be deducted. Not an accountant but just gleaned from everything I've read ...
On P/L statement: forgiven PPP loan is under "Other Income": needs to be recorded in our books as, after all, it did get deposited and was used to pay for expenses.
On Business TT: 1) when entering Income items, do not include this "Other Income: forgiven PPP loan";
2) Enter all Deduction items as usual;
3) Income/Reconciliation (M1): Enter your P/L's Net Income and other adjustments, as usual, then under #7, I, "Other Income on books not on return"(which is what this is), add in the forgiven PPP loan amount.
This worked for me and everything balanced. Total Income did not include PPP forgiven amount, all expenses including those paid with PPP were part of deductions, and this same PPP is still reflected on taxes via M1.
Hope this helps.
