PPP Loans – New Stimulus changes

NEW STIMULUS BILL MAY AFFECT YOUR TAX PLANNING 

Tax deductibility for PPP expenses

The bill specifies that business expenses paid with forgiven PPP loans ARE tax-deductible. This supersedes IRS guidance that such expenses could not be deducted and brings the policy in line with what the AICPA and hundreds of other business associations have argued was Congress’s intent when it created the original PPP as part of the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136.

If you have questions or would like us to review your 2020 tax planning, please reach out to your contact at Westbrook & Co., PC.