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Level 1

In what account in the Chart of Accounts isa debt forgiveness, e.g. PPP Loan, recorded?

 
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Level 15

In what account in the Chart of Accounts isa debt forgiveness, e.g. PPP Loan, recorded?

This whole PPP loan thing is causing issues, the best advice is to hold off on asking for forgiveness until the IRS and congress finalizes the rules.

 

As it stands now, subject to change, If there is a reasonable expectation of loan forgiveness, regardless of whether you file for it or not, no expenses that were paid with PPP money are deductible.

 

So it is not just the forgiveness aspect that needs to be accounted for, but the expenses paid for with that money too.

 

I would create an other income type account named, PPP Loan - non taxable, and post it there.

Move all expenses paid with PPP money to an Other Expense account named, PPP loan exp. non taxable.  Then sit down with a tax accountant at tax time.

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