Search

Forgiven coronavirus PPP loan recipients ineligible for tax deductions - Fox Business

Get all the latest news on coronavirus and more delivered daily to your inbox.  Sign up here.

Continue Reading Below

Employers who have their Paycheck Protection Program loans forgiven will be ineligible for tax deductions on expenses paid for through the loan, the IRS announced on Thursday.

The tax agency released guidance clarifying that otherwise deductible business expenses, like salaries, will not be deductible if they were paid for by a forgiven PPP loan – thereby preventing a “double tax benefit.”

AS NEW YORK EYES POST-CORONAVIRUS ECONOMIC REOPENING, WILL REAL ESTATE REBOUND?

The forgiven loans won’t be taxed, and the ruling is based on the premise that deductions typically aren’t allowed on exempt income.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

PPP loans are largely expected to be allocated toward payroll expenses (75 percent), but the remaining 25 percent can be put toward rent, mortgage interest, utilities and interest on other debt obligations.

Recipients are eligible for complete forgiveness if they keep staffing numbers – and salaries – consistent, if loan allocation specifications are met and if the funds are used within an eight week window. Forgiveness is prorated if not all conditions are fully met.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Let's block ads! (Why?)



Business - Latest - Google News
May 01, 2020 at 09:25AM
https://ift.tt/2xsC3ME

Forgiven coronavirus PPP loan recipients ineligible for tax deductions - Fox Business
Business - Latest - Google News
https://ift.tt/2Rx7A4Y


Bagikan Berita Ini

0 Response to "Forgiven coronavirus PPP loan recipients ineligible for tax deductions - Fox Business"

Post a Comment

Powered by Blogger.