ThomasM125
Expert Alumni

Business & farm

You should have reported your PPP loan forgiven amount on line 16(b) of schedule K as Other Tax-Exempt Income.  That will make it show on line 3 of schedule M-2 which will impact your retained earnings on your balance sheet. That may resolve your issue.

 

You should set up a liability account for your PPP loan and the payments against it would be applied to that account. The interest portion of each payment would go to interest expense though.

 

@KurteL10 

[Edited 3/24/22 at 6:03 PM PST]

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"