Where do I put the PPP Loan on my S Corp Tax Forms

I’m working on my S-Corp Tax Return for 2020, and I can’t find any guidance on where to put the PPP Loan that has not been forgiven yet. I know it is not counted as income, but does anyone know which Page/Line to put it on for Form 1065 K1?

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PPP proceeds should be listed as a liability (money owed) on the balance sheet until forgiven. Once forgiven, it will be offset with a journal entry as “non taxable income”. Depending on your accounting software, these steps may vary.

As for the K1, since it is not recognized income and still a liability on the books, I don’t see anything related to assets or liabilities on the K1 form. Therefore, I would not expect to see anything related to an unforgiven PPP on the K1.

Please bear in mind that I am not an accountant and the rules are changing on a frequent basis. Please consult with an accountant for confirmation.


Thank you Paulie! That helps!

Katie Queen, MD