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Keeping owners, managers, and stakeholders up to date on issues affecting their businesses.

Viewing posts in "Taxation".

Timing Isn’t Everything: PPP-Funded Expenses Remain Non-Deductible Whether or Not Loans are Forgiven by Year-End

On November 18, 2020, the IRS released Revenue Ruling 2020-27 and Revenue Procedure 2020-51, both of which provide guidance on the treatment of expenses paid with PPP loan proceeds. While this guidance is consistent with the IRS’s previous guidance prohibiting the deduction of expenses paid using Payroll Protection Program (“PPP”) loan proceeds that are subsequently forgiven, it does provide taxpayers with clarification on the treatment of PPP-funded expenses incurred in the tax year prior to the year in which the SBA confirms whether their loan will be forgiven.

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