The Treasury Department and the IRS have just released additional guidance on the tax treatment of forgiveness of Paycheck Protection Program (PPP) loans authorized by the Coronavirus Aid, Relief and Economic Security (CARES) Act. The CARES Act says PPP loans may be forgiven without any tax consequences. The new ruling and accompanying revenue procedure (Rev. Rul. 2020-27; Rev. Proc. 2020-51) follow up on previous guidance stating that PPP loan expenses could not be deducted
The Paycheck Protection Program (PPP) is a loan/grant program designed to assist small businesses impacted by COVID-19. Established by the US Small Business Administration, this unique program allows loans to be forgiven, provided the funds are used in a requisite manner. This webinar will cover the 3 forms available for applying for loan forgiveness: Form 3508, Form 3508-EZ and Form 3508-S. We will include case studies.
Key Topics for the webinar :
- Overview of the program
- Latest Congressional proposals for changes to the program
- Deep discussion of the tax deduction (or lack thereof) issue
- The 3 forgiveness forms
- When to apply for forgiveness
- Choosing 8-weeks or 24-weeks
- Limits on forgiveness on pay to owners
- Limits on forgiveness for pay to non-owners
- What counts as non-payroll costs
- How forgiveness limits work for each entity type: sole proprietor, partnership, S-corporation and C-corporation
- What is the FTE limitation?
- What is the wage-reduction limitation?
- Case studies and filled-out forms