ppp loan bookkeeping

[schirallicpa]

So whats the bookkeeping now to get the loan off the books when it's forgiven?  Is it still income on the books and then a Schedule M adjustment to remove from taxable income?

 

[Lion EA]

Yep, Other Income, then however you need to break it out, such as a sub-account Non-taxable PPP Forgiveness. The bank accounts will reconcile. Schedule M adjustment. The tax return will NOT show taxable income and WILL show deductible expenses.