I know that the WI Dept of Revenue went to great pains to clarify that PPP loan proceeds are NOT taxable. But while that's technically correct, when you cut through the BS disallowing the expenses that were paid for with PPP loan proceeds ultimately results in the proceeds being taxed (assuming the money was fully spent on qualified expenses). But, leaving that semantic nonsense aside for a moment...

Does anyone know how we are to practically report the disallowed expenses on what will ultimately be the individual's tax return because my client's S Corp doesn't pay tax at the entity level in WI.

Thanks for any clarification.