As of December 20, 2020, Congress agreed on stimulus payments to combat the struggling economy in the wake of the Covid-19 pandemic.
The Emergency COVID Relief Act of 2020. The new package approved by Congress provides an additional $900 billion to stimulate the economy. The Act includes significant changes to the Paycheck Protection Program (PPP).
The Emergency COVID Relief Act of 2020 Clarification of Tax implications of PPP funds:
- PPP loan forgiveness – not a taxable event
- PPP covered expenses – are deductible
- Owners’ basis for flow-thru entities – increased
Need Assistance With PPP Loan Forgiveness?
Summit CPAs Professional Services pays close attention to Washington D.C. and keeps a close eye on updates and guidance from the SBA, the Treasury, Congress, and the IRS. To discuss your current tax situation or discuss PPP Loan Forgiveness, contact us at 305.444.8280.