A Complete Guide to PPP Loan Forgiveness for the Self-Employed
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I have a question. If the PPP loan is forgiven is it now considered Taxable and has to be reported as taxable income on 2020 tax return?
4 Replies
Tony D'Anna
from Let's Walk Chicago
You can’t deduct the expenses which were paid with ppp proceeds. For example, if you used $5k of ppp funds to pay rent, the $5k does not reduce your taxable income.
Tony D'Anna
from Let's Walk Chicago
This changed in Dec 2020. PPP loans are NOT taxable.
Lisa Keyser
from LMK Web Services
Good question!
Mario Sgroi
from ADP - Astoria / Long Island City / Queens
The only taxable income would be the funds that are not forgiven. If you have any questions, please feel free to give me a call. xxx-xxx-xxxx
Denise Brown-Chillers, LMSW, CCTP
from ICHANGE
However, SBA have just revised the forgiveness aspect of the PPP and your 2019 Schedule C must demonstrate some profit.
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