Hey, decline (and anyone else taking PPP loans). You'll need to talk to your accountants.
Posted by
spamlet
Apr 30 '20, 19:34
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The IRS ruled today that any expenses paid for with PPP funds will be non-deductible next year. In the end, you're no worse off than if you had taxable revenue and deductions but it eliminates the "double dip" of non-taxable income and still getting the deductions for the salary expenses.
The guidance is pretty clear and I know several practitioners that immediately raised this issue when the law was passed so it's not entirely surprising but you may hear some protests from Congresspeople that are less versed in the tax law that they write.
I'm not sure if you've done any calculations for paying estimates for 2020 but you'll need to take this into account if you haven't already. Like I said, you're no worse off than you would have been before the law but it wasn't entirely clear how this would be handled.
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