Farm Program Payments

[Snaggletooth]

Saw a couple of 1009-G CCC information returns today where farmers were paid benefits under programs which clearly stated "Coronavirus". I didn't think Coronavirus benefits were taxable, but I can't find any evidence that they are not.

Are they taxable???

[TaxGuyBill]

Most payments from programs that were funded by coronavirus legislation ARE taxable. The PPP and EIDL (non-taxable) are just two of the most well known programs.

I took some CPE and the speaker pointed out §278 COVID-related Tax Relief Act of 2020 from the recent Dec law clarifies the FOUR programs that are non-taxable. The other two non-taxable programs are the United States Treasury Program Management Authority from §1109 of the CARES Act and the Grants for Shuttered Venue Operators from §324 of the Economic Aid to Hard-Hit Small
Businesses, Nonprofits, and Venues Act. The speaker was very emphatic that those are the only 4 coronavirus programs that are nontaxable (although I supposes there could be some already-existing programs that were already non-taxable that got more funding due to coronavirus, but generally those types of things are taxable).

[Snaggletooth]

Do I understand that the PPP forgiveness is taxable? I thought there was adequate discussion about raising basis, etc. that would lead one to believe PPP forgiveness was tax exempt. I need to be clear, because there are people that are counting on it being non-taxable.

[Lion]

I agree with what Bill told you re "The PPP...(nontaxable)...

[shortimer]

The payments you are seeing on the CCC 1099-G are likely labeled CFAP-CARES-Covid 19, CFAP-CCC-Covid 19 and CFAP2-CCC-Covid 19, these are taxable like any other farm supports. There could be some others besides these three listed that I can't speak for but these are the common ones that are new this year.

[Snaggletooth]

Short-timer this is exactly the stuff I am seeing. Thanks.

The stimulus payments were tax-free. For business relief, it looks like they are taxable, with rare exceptions referred to by TaxGuyBill.