Debit PPP loan,make an 'other income' account on your P&L. So it shows at the bottom - not where 'ordinary income' goes. Call the account PPP Loan forgiveness-n...
The distribution will show on your K-1. However it is your responsibility to track your basis. That will not be shown on the K-1. You need to keep track of your...
The loan is not income. When Congress did PPP #2 they specified that the loan forgiveness is NOT income, and you can write off all expenses paid by the loan.
JamesG1 - it is not interest - and should not be reported as such. You are correct it is reconciled on Schedule M-1, but I recommend writing in on the line Perm...
