Quote:
Originally Posted by Trivers
Sorry, but the IRS is saying otherwise;
Yes, the PPP loan/grant is not taxable, BUT....you can't claim the EXPENSES paid by the PPP.
&*^$#^^^&!!*)+*
We are still paying taxes.
Politicians didn't expect this stunt from the Treasury Dept and state they will close that loophole.
"This notice provides guidance regarding the deductibility for Federal income tax
purposes of certain otherwise deductible expenses incurred in a taxpayer’s trade or
business when the taxpayer receives a loan (covered loan) pursuant to the Paycheck
Protection Program under section 7(a)(36) of the Small Business Act (15 U.S.C.
636(a)(36)). Specifically, this notice clarifies that no deduction is allowed under the
Internal Revenue Code (Code) for an expense that is otherwise deductible if the
payment of the expense results in forgiveness of a covered loan pursuant to section
1106(b) of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Public
Law 116-136, 134 Stat. 281, 286-93 (March 27, 2020) and the income associated with
the forgiveness is excluded from gross income for purposes of the Code pursuant to
section 1106(i) of the CARES Act."
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I should have read the article better. Yeah. I’m going to guess congress will try and change the language. Whether they will or not remains to be seen.
Typically loan forgiveness is taxable and any associated expenses deductible. So congress came out and said they won’t be taxable so Treasury said that expenses used won’t be deductible.
Which is not awesome. For anyone except auditors.
Quote:
Originally Posted by displacedinMN
Sister and I are already talking about it as a good faith act.
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Presume rent is due in Dec or Jan? For sure wait until you see what the program looks like. If it’s due in May or something maybe let them defer it and see how the year goes.