My client an LLC had a PPP Loan Forgiven and an EIDL Advance in 2021. The book to Tax Difference is an M-1 adjustment. Will the adjustment to Partners Capital be an M-2 adjustment? For an Scorp there is an adjustment to the AAA account. So I'm thinking on a Partnership since book income is different than taxable income, it would be an M-2 adjustment since the Partners get basis for a PPP Loan Forgiven and a EIDL Advance.
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