PPP loan journal entries for payroll expenses for 2020 before loan is forgiven.

They will show as PPP payroll expense no matter the status of forgiveness. However for tax purposes your CPA will exclude them from deductible expenses. The IRS early on ruled that any allowable PPP expenses would never be an allowable tax deductible expense. Recently they reinforced this status by declaring  that even if your forgiveness is not approved or tou do not seek forgiveness that the expenditure of PPP funds cannot be deducted in 2020

Thank you.  That is the way I read how the expenses would be handled.  Thanks for the reassurance.