Many businesses experienced financial relief during the pandemic through Paycheck Protection Program (PPP) funds, as administered by the Small Business Administration (SBA). With that relief came reporting requirements and potential SBA review. Businesses navigating the loan forgiveness application process are also planning for the end-of-the-year and related income tax strategies, while wondering if their PPP loans will be forgiven.
PYA, in conjunction with the Blount Partnership, presented a webinar, What’s Next for PPP Recipients — Navigating the Forgiveness Process and (Finally) Planning for the Close of 2020 for Income Tax Purposes.
PYA Principals Debbie Ernsberger and Mark Brumbelow discussed the PPP and related year-end tax strategies as we wind down 2020. Key takeaways included the following:
- Appropriate use of PPP loan proceeds, and documents to retain for record-keeping
- Forgiveness application forms required for completion
- Key components of the PPP loan forgiveness application
- Impact of forgiveness determination on expense deductibility
- Tax planning strategies for minimizing the tax impact of forgiveness
- Needs for legislative and guidance clarity
The webinar took place December 2, 2020.
If you have questions about PPP loan forgiveness or tax planning and strategies, or would like additional COVID-19 guidance, visit PYA’s COVID-19 hub, or contact a PYA executive below at (800) 270-9629.