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Costs paid with 2020 PPP finances can be subtracted on 2021 …

2021-2) the IRS supplied that a taxpayer that obtained a financing via the PPP was not allowed to subtract expenditures that are generally insurance deductible under the Code to the degree the repayment of those costs resulted in PPP lending mercy. In dependence on that advice, numerous taxpayers did not subtract expenditures paid with PPP funding earnings on their 2020 tax obligation returns. 2021-20 does not use to expenditures in the increased checklist of expenditures in Section 304(b)( 2) of Division N, Title III, of the CAA, for which a private or entity that got an initial PPP covered car loan might get mercy.

2021-2) the IRS gave that a taxpayer that obtained a finance with the PPP was not allowed to subtract costs that are generally insurance deductible under the Code to the level the repayment of those expenditures resulted in PPP car loan mercy. In dependence on that advice, several taxpayers did not subtract expenditures paid with PPP financing profits on their 2020 tax obligation returns. 2021-20 does not use to expenditures in the increased listing of costs in Section 304(b)( 2) of Division N, Title III, of the CAA, for which a specific or entity that got an initial PPP covered funding might obtain mercy. In enhancement, the risk-free harbor does not use to PPP second-draw car loans established under the CAA. Since PPP second-draw finances are not initial PPP covered car loans, qualified costs that might result in mercy of those finances are not covered by Rev. Proc.

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