Form 1120S instr indicate how to report ppp loan forgiveness

@SL32_2  I completely agree with you.

I agree!  I have been working on this all morning.  Can't get the M-1 to balance with the book income because I have PPP expenses that were deducted last year for PPP1 and both loans forgiven this year.  I adjusted the M-2 opening balance to record the expenses paid as a negative in OAA (if we would been able to do this correctly last year) so when I post the loan forgiveness and the "other expenses related to tax-exempt income" for PPP2's expenses paid this year the OAA column is zero.  That is what I want but the AAA column needs the PPP1 expenses from last year to balance to book income.  The IRS instructions say to include expenses that were paid in a prior year with proceeds from PPP loans that were forgiven this year on M-2 Line 3(a) and in column (d) on line 5 but I cant find anywhere on the M-1 worksheet that flows to Line 3(a).  I have only found Line 10H on the actual K-1 and labeling it a non-taxable tax benefit item but I am not sure this is correct...Anyone found a better solution or an entry on the M-1 worksheet that works for this situation?