I'm aware that PPP loans are not taxable if they are forgiven for both Federal and CA; however, do you still have to show the income on the Schedule C and make a negative adjustment for the forgiven loan amount on the Schedule C? Also, I know that you can include all expenses for Federal purposes, but CA is not allowing the expenses (minus payroll) at this time that are attributable to the business for a sole proprietor. I know there is a CA bill that will hopefully be passed where CA will conform to the Federal law. I'm just wondering how everyone in the community is handling these PPP loans for Schedule C filers. I'm thinking perhaps not putting the income on the tax return. 

Thanks