ST Alpha - "Oh, man. All those small businesses going for the forgivable loans are going to get crushed at tax time. -- (edited)" (Reading a Post)

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Oh, man. All those small businesses going for the forgivable loans are going to get crushed at tax time. -- (edited)

Posted by spamlet Apr 16 '20, 06:01

While the Feds have said it isn't taxable, most states have not (and in some cases will not) update their laws to conform to the Federal law. So in states like CA and NY that don't automatically conform to Federal law the amount forgiven will be taxable for state purposes. Depending on the amount that could be several hundred thousand dollars of phantom income for some of these businesses. That could mean tax rates of near 11% in CA and 13% in NYC depending on how the business is structured.

Responses:

uh, is there a list of states the do automatically conform to Federal law? -- nm* - decline Apr 16, 06:04 4
- You should be okay. PA conforms unless they specifically decouple. - spamlet Apr 16, 06:10 3
  - my business is in NJ -- (edited) - decline Apr 16, 06:10 2
    - Same answer, luckily. -- nm - spamlet Apr 16, 06:11 1
      - 👍 -- nm - decline Apr 16, 06:13

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Oh, man. All those small businesses going for the forgivable loans are going to get crushed at tax time. -- (edited)

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