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Expenses paid with 2020 PPP financings can be deducted o.

2021-2) the IRS provided that a taxpayer that obtained an auto loan with the PPP was not permitted to deduct prices that are commonly insurance coverage deductible under the Code to the level the negotiation of those prices led to PPP funding grace. In reliance on that particular assistance, various taxpayers did not deduct expenses paid with PPP funding earnings on their 2020 tax commitment returns. 2021-20 does not make use of to expenses in the expanded listing of expenses in Section 304(b)( 2) of Division N, Title III, of the CAA, for which an exclusive or entity that obtained a preliminary PPP covered auto loan can acquire grace.

2021-2) the IRS provided that a taxpayer that acquired a financing with the PPP was not permitted to deduct expenses that are normally insurance coverage deductible under the Code to the degree the settlement of those expenses resulted in PPP money grace. Due to the reality that PPP second-draw fundings are not preliminary PPP covered financial resources, certified prices that may result in grace of those financial resources are not covered by Rev. Proc.

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