On November 18, the U.S. Treasury Department and Internal Revenue Service (IRS) released guidance for businesses that received Paycheck Protection Program (PPP) loans regarding deductibility of expenses for tax purposes that were paid by PPP loan funds. The IRS has said that while the forgiveness is tax-free, business owners can’t deduct expenses that were covered by the loan.
https://home.treasury.gov/news/press-releases/sm1187
Please contact your Whitlock advisor with questions regarding PPP funds.
