The IRS recently released guidance about the deductibility of expenses in connection with the Paycheck Protection Program (PPP) loan under the CARES Act. The IRS position is that taxpayers cannot claim a deduction for any otherwise deductible expense if the payment of the expense results in forgiveness of a PPP loan because the income associated with the forgiveness is excluded from gross income under the CARES Act.
Read more here:
https://www.journalofaccountancy.com/news/2020/nov/ppp-loan-forgiveness-irs-safe-harbor.html?utm_source=mnl:cpald&utm_medium=email&utm_campaign=20Nov2020 .
For more information, please contact Perry Barnett at (770) 287-7800 or pbarnett@rushtonandcompany.com . Stay tuned for more tax tips or follow them on our social media accounts every #TaxTipTuesday!