Clarifications on the Deductibility of Expenses for Businesses with a PPP Loan

Please note that this blog is based on laws effective in November 2020 and may not contain later amendments. Please contact Cray Kaiser for most recent information.

The U.S. Treasury Department and Internal Revenue Service (IRS) released guidance on November 18th clarifying the deductibility of expenses where a Paycheck Protection Program (PPP) loan has not been forgiven by the end of the year the loan was received. Here are the key points from the announcement: 

It is important to note the newly released guidance does not address taxpayers with a fiscal year.

CK’s tax department is keeping a close eye on these developments. It is possible that Congress will act to offset the Treasury’s decision on deductible expenses. As soon as we have more information we will post it on our website. In the meantime, if you have any questions about your PPP loan and the deductibility of expenses, contact us at 630-953-4900.

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