New Stimulus Package Ppp Taxable

The 900 billion covid 19 relief package passed monday provides 284 billion for a revised paycheck protection program ppp and clarifies that businesses can claim tax deductions for expenses paid for with forgiven ppp loans.

New stimulus package ppp taxable. In its massive new pandemic relief and stimulus package congress has significantly modified the paycheck protection program ppp to allow for second draws from the program to simplify the loan. The bill states definitively that business owners won t be taxed on their forgiven ppp loans. The caa clarifies that for taxable taxpayers expenditures for ppp loan forgiveness qualifying expenses i e payroll costs mortgage interest rent and utilities are fully deductible in computing taxable income.

What the new coronavirus stimulus package means for churches. These guidelines cover loans taken under the original cares act and second draw loans. 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.

In its massive new pandemic relief and stimulus package congress has significantly modified the paycheck protection program ppp to allow for second draws from the program to simplify the loan forgiveness process to provide restaurants access to greater relief and to extend the program through march 2021. New treatment of ppp expenses. Expenses used for ppp forgiveness are now tax deductible.

In december 2020 the federal government passed a new 900 billion stimulus that includes 284 billion in additional paycheck protection program ppp funding for small businesses. The new stimulus package also clears up the controversial issue of ppp deductibility and taxation. Hampton and gabriel b.

For seasonal employers the maximum amount of new ppp loans is based upon 2 5 times the average monthly payroll costs for the 12 week that begins february 15 2019 or march 1 2019 and ends.