My research on the PPP loan taxability this afternoon has told me that on 12/27 congress made it clear that the proceeds from the PPP loan would not be income, and that you would not have to reduce your expenses for payroll (and other expenses etc.) that were paid for with the money. Making it tax free. So I'm assuming that means its an M-1 adjustment. What is the consensus on what line to put that M-1 adjustment, permanent "other" income item? If anyone can confirm my research and let me know how they will list the M-1 adjustment I would appreciate it.