My best fix for entries requires overrides on various worksheets.  sch m-1 item ws.  permanent income items (tax exempt)  - manual entry "ppp loan forgiveness and enter amount "per books"  next sch m-1 ws.  expense items  "other expense related to tax exempt income enter ppp loan expenses on "per books" column (I entered as a supporting ws for description) (transfers as negative amount in difference column.  this will -0- out oaa on m1.  next, sch m1 ws, expense items,  "other permanent expense items"  enter "ppp qualified expenses" and enter in book column - then override difference column to -0-.  m2 ws needs an override 'schedule k additions"  enter "ppp loan proceeds" and amount in aaa column.    next,  schedule M-1 (NOT WORKSHEET)  enter line 3 (b) "ppp qualified expenses" and enter amount as a negative number.  (this will -0- out schedule M-1 3(b).  next need to override schedule K, line 16(c) to -0- (deletes reporting of expenses associated with tax exempt income).  finally, need to override shareholder basis statement, line 3 to the amounts reported on M-2 lines 2 and line 3.  this is a lot of work.  but in my case , schedule k and k-1 correct, sch M-1 correct and M-2 correct (m1 and m2 reporting according to IRS instructions)  and Basis correct.  Intuit has really dropped the ball on this one.  they also dropped the ball on 1040 form 7203 s corp shareholder basis.