Stimulus Package Ppp Loan Expenses

So more small businesses may take advantage of this relief package.

Stimulus package ppp loan expenses. Highlights including deductibility of expenses for ppp loan recipients posted on december 22 2020 december 28 2020 the house and senate passed a new stimulus legislation that will include direct payments to americans jobless benefits and funds for businesses and vaccine distribution which the president signed on december 27th. Lawmakers said they reserved some of the ppp funds for very small businesses as. The consolidated appropriations act 2021 caa 2021 section 276 clarification of tax treatment of forgiveness of covered loans allows paycheck protection program ppp loan borrowers to deduct payroll and non payroll expenses paid for with ppp loans on.

Jim johnson tweet share share email more. The legislation includes a very favorable update to the paycheck protection program ppp for farmers and ranchers and also provides the u s. The sba small business administration will forgive loans of ppp loan borrowers if certain criteria are met.

New funding new rules simplified application. On december 27 2020 president trump signed into law a 908 billion relief package. The deal includes 20 billion for targeted grants through the economic injury disaster loans program.

Ppp loans will cover additional expenses including operations expenditures property damage costs. You can get forgiveness for this ppp loan by spending at least 60 on payroll expenses wages salaries retirement group health insurance etc and a maximum of 40 on other qualifying expenses. Ppp loans are forgivable and despite normal tax rules if the loan is forgiven that will not be income.

The package provides 15 billion for independent movie theaters and cultural institutions. This supersedes irs guidance saying that if you paid business expenses with forgiven ppp funds the expenses would not qualify for small business tax deductions as they ordinarily would. The package also includes a tax break for corporate meal expenses.

Ppp 2021 284b stimulus package. This is causing owners and accountants everywhere to heave a sigh of relief. Using the funds for eligible expenses including payroll costs.