Congress Stimulus Bill Ppp Forgiveness

New stimulus bill includes second round of ppp loans for small business and forgiveness rule changes favorable to borrowers.

Congress stimulus bill ppp forgiveness. The second round of ppp loans for affected small businesses are. Ppp loans are forgivable and despite normal tax rules if the loan is forgiven that will not be income. The bill also makes clear that ppp forgiveness is not taxable it s excluded from income.

Congress at last passed a second stimulus bill this week as of this writing it is still awaiting president trump s signature and it includes a second round of ppp loans for affected small businesses as well as loan forgiveness rule changes that are favorable to ppp borrowers. Section 276 of division nn of yesterday s bill provides that while forgiven ppp funds are not considered taxable income a departure from the general rule of section 61. Congress is acting today to allow ppp borrowers to deduct ppp expenses and not have to include loan forgiveness in income.

As part of the package congress clarified its earlier intent to make loans forgiven under the ppp be non taxable. The irs said no to tax deductions with ppp money but congress reversed the irs. The bill allows borrowers that returned all or part of a previous ppp loan to reapply for the maximum amount available to them.

As with ppp1 the costs eligible for loan forgiveness in ppp2 include payroll rent covered mortgage interest and utilities. The 900 billion covid 19 stimulus bill of december 2020 improves the paycheck protection program ppp2. Provides tax deductions and other relief.

The new coronavirus stimulus bill mandates the united states small business administration sba to create and provide a simplified ppp forgiveness application for small businesses who were only qualified for ppp loans of less than 150 000. Late monday december 21 congress passed and sent to president trump for signature the consolidated appropriations act 2021 which includes additional stimulus for the weakened economy. And the shareholders of s corporations will enjoy another benefit that.

Congress finally passed further covid relief and it potentially bodes. Entrepreneur by mat sorensen. If you are a small business owner the covid 19 stimulus package that congress passed on monday evening december 21 2020 has some very good news.