PPP Loan forgiveness and 1120

[CH_CPA]

How should PPP loan forgiveness be handled on 1120? Should it be an M-1 Book-Tax adjustment or M-2 Other increases to RE?

[IRonMaN]

Where do you normally put amounts that are treated differently for tax than they are for books?

[CH_CPA]

M-1 adjustment. Just asking if there has been any IRS guidance on the issue that I have not seen yet.

[IRonMaN]

M-1 would be the correct route.