Stimulus Package And Ppp Deductions

As part of the federal stimulus package the employee retention credit erc is extended to july 1 2021.

Stimulus package and ppp deductions. Special to usa today. Among other things the. The bill which runs over 5 000 pages expands the paycheck protection program ppp which was originally established when the cares act was enacted earlier this year.

These guidelines cover loans taken under the original cares act and second draw loans. The latest stimulus bill from congress which passed on december 21 2020 includes. Congress took its time and president donald trump held it up.

As of today the sba is no longer accepting ppp applications from participating lenders. What you need to know late on december 21 2020 congress passed its latest stimulus package. The bill states definitively that business owners won t be taxed on their forgiven ppp loans.

Businesses may now take the erc and the ppp but the wages used in computing the erc are not forgivable costs under the ppp program. New stimulus package anticipated to include potential ppp deductibility and other favorable. Looks to reverse the treasury department s position of denied ppp expense deductions and allow for the deductibility of.

What s in the stimulus package for small businesses ppp loans and cultural grants. Deducting ppp expenses the new stimulus package also clears up the controversial issue of ppp deductibility and taxation. This is a high level overview of only some of the key items making their way through the new 900 billion stimulus package.

Small business owners who got paycheck protection program loans could qualify for big write offs from their rescue money amounting to what treasury secretary steven mnuchin has called a tax break double dip. But that is changing. Employee retention credit is explained in details in this separate article.