Ppp

[rbynaker]

I agree with Lion. There is no reason to help your clients procrastinate. If they want your help, they can act like adults and get you the information in a timely manner. DEFINITELY don't let their procrastination cause you more stress.

Just my personal opinion. Congress will keep tinkering with this stuff. Currently we have an unfavorable IRS interpretation saying that expenses paid with forgiven PPP loan money are not deductible. That could easily change by another act of Congress. They've already tinkered with the minimum payroll percentage to allow more "other" qualified expenses to be included in the forgiveness calculation.

Given the track record of Congress lately (I still have a list of 2018 1040X returns to file with energy credits & other extenders!), I would not be surprised if we're well into 2021 before we really know what the "final" rules are going to be regarding PPP loan forgiveness and the taxation thereof. So I'm not personally in a rush to have folks file right now.

Rick

[spanel]

Lets think about this for a minute.

Sch C - no employees $10,000 PPP - Not taxable - Doesn't have to offset expenses?

S corp - 1 employee (100% shareholder) $10,000 PPP - Not taxable - Has to offset expenses?

This doesn't seem correct to me.

Chris

[Lion]

Congress didn't want sole proprietors to get a windfall, so it was NOT all forgiven under earlier "clarifications." Then the forgiveness was re-clarified. And, Congress is starting to say, they didn't intend for the PPP expenses NOT to be deductible - for anyone. Wait. Just wait. We're still working off about the 17th version of interim final regulations. Someday we might have final final regulations.