Where should I be adding my PPP and restaurant revitalization fund on form 1065? They are both non-taxable income grants but the proceeds can be deducted.

[popfizz]

Do I enter it on line 7 of the 1065 partnership return or should I add it as other tax exempt income (line 18b)?  Again, the rules say that the expenses incurred and paid for with the fund are tax deductible.  

[ThomasM125]

Non taxable PPP grant income is reported on line 16(b) on schedule K of your partnership return Form 1065. You can use the forms mode in TurboTax to find schedule K in the Form 1065 p4-5 option in the list of forms. You can make your entry directly on the line 16(b) of schedule K.