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PPP Loans-All small businesses must read

MAC56

Well-Known Member
We were notified friday by our Cpa that the IRS ruling is that the ppp money if used for the qualified expenses to be forgiven means that those same expenses can’t by deducted to offset income resulting in ....an increase in taxable income. Not surprised.
 

Robin Hood

Well-Known Member
We were notified friday by our Cpa that the IRS ruling is that the ppp money if used for the qualified expenses to be forgiven means that those same expenses can’t by deducted to offset income resulting in ....an increase in taxable income. Not surprised.
The problem is if you allow the deductions, then the people that got the money and didn't need it would get the funds tax free straight to the bottom line.
 

Bro_Gill

Well-Known Member
Yeah, why should you be able to deduct pay YOU didn't pay? The plan is to help you AND your employees, not just you.
 

43mod

Well-Known Member
I like that it is tied to tax paying people. Business and employees. Nothing is perfect but on short order it could be worse
 

frozenh2o

Well-Known Member
I wouldn't describe it as an increase in taxable income, a better description would be "tax-neutral". You aren't taxed on the forgiven income, nor do you take the write-off for the expenses that cease to exist.

I applied for the PPP on 4/6 and the money hit the bank 5/3.
Applied for the EIDL on 4/9 and the cash hit on 4/30.
 

johndjmix

Well-Known Member
Didnt apply, didnt need it....trying to help keep the money in the hands of you guys that are suffering through this. Lets hope the banks get all the apps processed for you guys.

--John
 

DGruper

Well-Known Member
Got lost in the shuffle on the PPP. Not holding my breath for Round 2.
EIDL email says I’m being processed, but no approximate date provided. Sure could use it right about 2 weeks ago...
 

bajaherbie

Well-Known Member
I missed round one but called my banker when I heard about round two. He emailed me a list of requirements on the 25th of April, I had it ready for the bank the following Monday morning, and signed everything on the 30th of April.

I thought he said it would be dispersed the first of June but it was deposited yesterday according to my wife/book keeper.

Perfect timing too, I have one excellent employee and had been paying him out of my pocket while we were not working.
 

philmc12

Well-Known Member
Got lost in the shuffle on the PPP. Not holding my breath for Round 2.
EIDL email says I’m being processed, but no approximate date provided. Sure could use it right about 2 weeks ago...
Got ours through PayPal. We bank with Wells Fargo and had the app in 2 hours after they put it up on round one. No dice. Applied with PayPal,Kabbage and Square. PayPal pulled through on round 2 a week ago. Apply as many places as you can. The big banks are greasing the wheels of their big customers. They suck. Good luck!
 
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Bricoop

Well-Known Member
Got ours through PayPal. We bank with Wells Fargo and had the app in 2 hours after they put it up on round one. No dice. Applied with PayPal,Kabbage and Square. PayPal pulled through on round 2 a week ago. Apply as many places as you can. The big banks are greasing the wheels of their big customers. They suck. Good luck!
Echoing this. Lots of reports of big banks favoring existing borrowers in this.

(If your customer goes BK, would you rather it be the guy who owes you nothing or the guy who owes you on existing loans?)
 
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