PPP Loan Forgiveness not income

It’s not considered taxable income but if the expenses the PPP covers are not deductible isn’t that effectively the same thing?  Maybe I’m just confused.

If a business has a gross of 100,000 and expenses of 60,000 that leaves a profit of 40,000.  If the business gets 10,000 in PPP money and uses it to pay payroll and other authorized expenses that reduces expenses by 10,000.  So 100,000 minus 50,000 leaves 50,000 profit.  Seems to be exactly the same as if it were counted as income in which case 110,000 minus 60,000 equals 50,000.   What am I missing?

Hey, Filmteknik.

Thank you for reaching out to the QuickBooks Community. I found a couple articles you can use as a reference.

• PPP Loan Forgiveness
• How to track time and paid leave

Please let me know if you have any other questions. Have a great day!

Hello,  Can someone tell me how they logged their PPP money in QBooks so that it IS NOT captured as taxable income?

Hello, mlriggio.

As mentioned above by John-Pero. The forgiven loan amounts are not taxable income. So I will gladly give you the steps to track the loan in your QuickBooks product. 

Continue to Pay your employees:

One of the main components of the Paycheck Protection Program is to help employers continue to pay or re-hire their employees. As you use your PPP funds, continue to run payroll and pay your employees.

Track what you spend on other eligible operating expenses:

1. On the Home page, select Enter Bills.
2. Select the vendor, then choose the date.
3. Select the Expense tab.
4. Choose the right expense account.
5. Enter the amount for the expense.
6. Select Save & Close.

Run a report to see how much you've spent:

1. Go to the Reports menu, then Company & Financial.
2. Select Profit & Loss Detail.
3. Select Customize Report.
4. From the Display tab, select the From date that your lender sent you the funds, and set the To date 8 weeks after.
5. Select the Filters tab, then select the Account filter.
6. Select the Account drop-down, then select the expense account you use to track how you spent your loan. To select specific sub-accounts, scroll to the top of the drop-down and select Multiple accounts then select the accounts.
7. To run your report, select OK.
   - Note: To save the report settings, select Memorize then give the report a name and select OK.
8. When you’re done, select either Print, Email, or Excel.

When these steps are done, you're all set up to correctly log and track your PPP loan funds. Please, refer to this article for further advice on how to track the PPP loan as well as this article for advice on how to prepare for loan forgiveness. 

If you have any other questions, feel free to post them below. 

Thank you and have a nice evening.