The PPP loan has saved many business due to COVID-19, but at the same time, this loan has also created a potential tax problem. This problem has to do with the forgiveness of these loans. The way the law is written, businesses who received the loan will not be taxed on the forgiven amounts. These businesses however, will not be able to deduct any expenses used in the forgiveness calculation. Click the link below to read more about the impact of forgivable loans.
If you are looking to apply for forgiveness, tax planning would be something you will want to consider this year to ensure you maximize your tax benefits. Contact your tax professional to schedule an appointment.
