December 28, 2020
Businesses that took funds from the Paycheck Protection Program (PPP) may receive some relief from the newly proposed stimulus bill.
According to lawmakers, the new bill includes provisions that would allow companies to deduct payroll costs, including payroll taxes, and any other associated expenses that had been paid for by PPP funds.
Previously, the U.S. Treasury Department had said that costs paid with PPP funds could not be deducted and would essentially serve as taxable income in 2021. The rule change in the latest stimulus bill would ostensibly allow for those expenses to be deducted, providing tax relief to companies that received PPP funding.
To be clear, the final wording on the provision hasn’t been made public as of now and lawmakers have signaled that there may be some limitations to the deductions. As always, Perlson, LLP will keep a close eye on the stimulus bill’s provisions and provide updated guidance to clients as soon as the stimulus bill is approved and its contents understood.
If you have any questions about the tax implications of your PPP loan, please contact Perlson at 516-541-0022.
It’s hard to believe, but once again it’s time to think about year-end and all the things you need to do to be ready for the 2023 tax season