PPP Loan Update
Updated: Jan 14
The 1st major ruling for business owners that received a PPP Loan in 2020 which has already been forgiven, or likely will be forgiven, the expenses paid using the funds (payroll, rent, utilities, etc.) are now able to be deducted on your business tax return or Schedule C if a sole proprietor. This is great news! If you have already reviewed your year-end tax projection with me over the past few weeks and have not made your 4th Quarter estimated tax payment yet, please contact me immediately so we can revise your plan. I will be working extra and available all next week to help everyone in this situation.
The 2nd major ruling for business owners is that a second round of PPP Loans will be available to first-time qualified borrowers and to businesses that previously received the first round of PPP Loans but with some restrictions. As more detailed information becomes available and when applications can begin to be filed will probably be sometime in January of the new year.
The 3rd major ruling is a second round of economic stimulus payments for individuals and families that qualify. As of today, the payments are $600 for individuals making up to $75,000 per year and $1,200 for married couples making up to $150,000 per year, as well as a $600 payment for each child dependent. However, the President is looking to increase those payments to $2,000 per person and has not officially signed off on the relief bill. Stay tuned!
If interested, you can read the following link to an article written in the Journal of Accountancy this week which tries to briefly explain and outline some of the details of each ruling. As further information becomes available, I will pass along this information to you but please feel free to give me a call anytime at the office (978-499-4300) to discuss.