PPP ALLOWABLE EXPENSES TO BE DEDUCTIBLE

[Lee B]

Yea ,the Omnibus Spending Bill due to be passed tomorrow or Tuesday includes the authorization to deduct the qualifying allowable expenses funded by PPP Loans which have been forgiven. It will also authorize a second round of PPP Loans with more restrictive qualifying parameters.

 

[Medlin Software, Dennis]

Most understood the forgiveness would eventually not exclude the expenses from countable for tax return, but it was wise to plan for this not to happen.  The last I saw was the new PPP would require showing a certain percentage loss of sales compared to a specific time.  I like it, as by now, all can see the actual effect and such qualifications make perfect sense.  I could be in the small minority, but I have nothing against the first round being based only on stating a possible or likely effect, since the program was implemented before anyone could have hard numbers to go on (for an entire quarter).  Yes, money was lost to fraud, and since all could likely state they might be impacted, some received funding who could have made it without.  The timeline was simply too short to catch even some of the obvious fraud upfront, and it appears as if there is an effort being made to catch at least some after the fact.

The next wait and see is if FFCRA will be extended or not.