The IRS has provided a safe harbor for deducting expenses if a Paycheck Protection Program (PPP) loan isn’t forgiven. The safe harbor allows a taxpayer to claim a 2020 deduction for deductible eligible expenses if they received a PPP loan that: 1) the taxpayer expects to be forgiven after the 2020 tax year, and 2) in a post-2020 tax year, the request for loan forgiveness is denied or the taxpayer doesn’t request loan forgiveness. The eligible expenses may be deducted on a taxpayer’s timely-filed 2020 tax return, an amended return or an Administrative Adjustment Request for 2020, or a timely-filed tax return for the subsequent tax year. Read Rev. Proc. 2020-51: https://bit.ly/3nIsz4s Call or visit our website for more information! www.mjscpa.com/
