New Guidance on PPP Deductibility

If you’ve been wondering what tax treatment to give your not-yet-forgiven PPP loan, the U.S. Treasury Department and Internal Revenue Service have new guidance.

According to the press release, the departments clarified on November 18 that the expenses wouldn’t be tax deductible if the PPP loan is ultimately forgiven since businesses are not taxed on the proceeds from the PPP loan when it is forgiven. If a business expects the PPP to be forgiven later, expenses related to the loan are not deductible. However, if it turns out that the PPP loan that you expected to be forgiven is not, your business will then be able to deduct any expenses related to the loan.

If you have further questions about the tax treatment of your PPP loan, please contact Gary Gruner or Laura Berry.

 

More information about the latest business insights on COVID-19Click Here