New Stimulus Bill Ppp Deduction

The new covid 19 relief bill clarifies that no deduction shall be denied or reduced no tax attribute shall be reduced and no basis increase shall be denied by reason of the exclusion from gross income provided by paragraph 1 this provision applies to loans under both the original ppp and subsequent ppp loans.

New stimulus bill ppp deduction. The 900 billion covid 19 stimulus bill of december 2020 improves the paycheck protection program ppp2. Among the federal tax changes in the bill are. Provides tax deductions and other relief.

6428a to the code. Ppp tax deductibility allowed. The bill provides a refundable tax credit in the amount of 600 per eligible family member by adding a new sec.

Senate and house of representatives overwhelmingly passed a 900 billion covid 19 relief bill that provides 600 stimulus payments to individuals adds 300 to extended weekly unemployment benefits and provides more than 300 billion in aid for small businesses. For a discussion of other aspects of the bill see our comprehensive alert here. The vast majority of ppp borrowers use their loan money to pay wages payroll tax expenses utilities rent and interest which are all normally tax deductible.

Highlights of the new stimulus bill second round of ppp loans forgiveness rule changes. Paycheck protection program the ppp one of the stimulus measures created by the cares act provides for the granting of federally guaranteed loans to small businesses nonprofit organizations veterans organizations and tribal businesses in an effort to keep businesses. President donald trump on sunday night signed into law the 900 billion covid 19 relief bill passed dec.

Covid 19 relief bill addresses key ppp issues. Senate and house of representatives passed a 900 billion covid 19 relief bill monday dec. This alert highlights the main tax provisions included in the bill.

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. Little has been written about whether the new law will allow ppp borrowers to deduct the expenses that they paid to receive forgiveness and many ppp borrowers will not survive if they have a big. Included as part of the stimulus bill the bill are the covid related tax relief act of 2020 and the taxpayer certainty and disaster tax relief act of 2020.