May 02 Weekly Update on Preparing for Recovery: Loan Options and Forgiveness Strategies
On April 30, 2020, the IRS provided much awaited clarity surrounding the federal tax implications of funds received under the Paycheck Protection Program (PPP). Specifically, the IRS has confirmed that federal tax deductions are disallowed in situations where the expenses are paid for with forgiven funds received under Section 1106 of the CARES Act.
In issuing this clarification, the IRS has addressed the hanging question about whether the ordinary and necessary trade or business expenses paid and incurred during the 8-week loan forgiveness covered period would also give rise to a tax deduction.
In addition to this IRS clarification, the Federal Reserve has updated the guidance and expanded eligibility under the Main Street Lending Program.
With changes constant and released guidance on-going, join Sax each week to hear about the most recent updates made to the relief programs, forgiveness clarifications, best practices for securing aid, and more.