Max W Posted May 31, 2022 Report Posted May 31, 2022 Client received $15K EiDL last year. He spent $9K on expenses and still has $6K What if anything is taxable; or is it a grant that has to be repaid and treated as a loan? Quote
Lee B Posted June 1, 2022 Report Posted June 1, 2022 My understanding is that these are working capital loans. Repayment results in an interest deduction. Quote
schirallicpa Posted June 3, 2022 Report Posted June 3, 2022 Some small business (my client is a farmer) received a first round of $1000 that does not have to be paid back. The additional money that he applied for thru SBA starts paying back in July. There has been a very big push to cancel this debt as well but I haven't heard confirmation of that. Quote
Lee B Posted June 3, 2022 Report Posted June 3, 2022 Yes there were grants in the amount of $1.000 to $10,000 that didn't have to paid back and were nontaxable, which is why they were called grants instead of loans, Quote
TexTaxToo Posted June 4, 2022 Report Posted June 4, 2022 You may want to read Revenue Procedure 21-49 which describes "Emergency EIDL Grants" of up to $10,000 under the CARES act and "Supplemental Targeted EIDL Advances" of up to $5,000 additional under ARPA. 1 Quote
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