New York, NY, December 21, 2020 – The new coronavirus relief bill could prevent Paycheck Protection Program (PPP) borrowers from paying taxes on their loans.
According to PPP Borrower Tax Relief Under Stimulus Bill – It’s Last Happening “by Alan Gassman,” Congress is acting today to allow PPP borrowers to deduct PPP expenses and not have to include loan forgiveness in income. . And shareholders of S corporations will enjoy another benefit which is described below.
“The possible bad news for many is that borrowers who received a final discount before the bill was enacted will not know whether or not they can deduct the expenses, as the new savings provision described below may not. not apply to them. That would most likely change after going through a technical fix due to the uproar that would obviously occur if it did.
“The good news for most PPP borrowers is that the bill allows these expenses to be deducted and loan forgiveness is not included in income. And borrowers who are S corporations will have another benefit which is described below as it is now written.