PPP has been vital for businesses during the pandemic but while its loans won’t be taxable, any expenses used to apply are
Congress is considering a new stimulus bill, which includes another round of paycheck protection program (PPP) funds targeted at specific businesses that have suffered revenue declines. That’s good news. But one big thing may be missing from this new legislation: a certain tax deduction that, if not allowed, could be very costly for any small business that received a forgivable PPP loan this year.
If your business received a PPP loan this year, you could be facing a big tax bill because of it. No, it’s not on the amount forgiven. That won’t be taxable. But as of now any expenses that you used to apply for forgiveness wouldn’t be deductible. And that’s a problem. Let me explain.
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