Number Crunchers, LLC

On December 27, 2020, President Donald Trump signed an end of the year relief bill providing $900 Billion of relief to individuals and businesses. Below are the highlights of the bill:

Paycheck Protection Program (PPP) expenses are deductible. This is a reversal of the Internal Revenue Service’s previous position and benefits loan recipients.

PPP loans under $150,000 will be eligible for a 1-page simplified forgiveness application. The new application is not available yet. If your loan is between $50,000 and $150,000, it is advisable to wait for the new form and guidance before applying for forgiveness.

EIDL advance amounts will NOT reduce your PPP forgiveness amount. Most businesses received up to $10,000 for their advance. As a result of the most current bill, these funds will not have to be repaid as part of the PPP forgiveness process.

PPP loan:
Per CPA: Move amount you expect to be forgiven to other income. Leave deductions alone.

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