I am in this scenario with PPP crossing years: negative retained earnings, and distributions in excess of retained earnings as a result. Is it acceptable to defer the PPP expense recognition until 2021 (cash basis taxpayer)? Or, can I create shareholder loans (2 shareholders) to balance Schedule L? Or is there some other guidance you can provide to help me get this resolved? I just think it stinks if my clients have to have capital gains this year due to the PPP loan not being forgiven until 2021. I am positive they will be forgiven the entire amount, as it was only $41k, and we have complete documentation to satisfy any requirements. Thank you for any advice you can provide.