Stoll Keenon Ogden PLLC | Advertising Material
May 4, 2020
Thomas E. Rutledge
Member, Stoll Keenon Ogden PLLC
In an April 30 article reviewing the mechanism by which a Paycheck Protection Program loan may be forgiven, a pair of open tax questions with respect to PPP loans were reviewed. One of them dealt with the question of whether expenses funded with a forgiven PPP loan may be deducted from a borrower’s taxes.
Well, the ink was barely dry on that before the IRS addressed the question. In a notice published April 30, the IRS announced (IRS announcement was 2020–32) that expenses that are funded with a forgiven PPP loan may not be deducted from the borrower’s income. In effect, while for example compensation payments may be paid for with a PPP loan, and the borrower does not recognize income in the amount of those loan proceeds, the borrower may not also take a deduction in that same amount.
Such is the rate of change with PPP loans.
Stoll Keenon Ogden understands that these are trying times for our clients and our country. Our firm operations have continued uninterrupted and our attorneys are equipped to serve as we always have – for more than 120 years.
If you would like to discuss the Paycheck Protection Program, the opportunities therein for your business, or other business-assistance programs available during the COVID-19 pandemic, please contact SKO’s SBA Loan Team led by Jamie Brodsky (502-568-5473) and Brad Keeton (502-568-5439).
Please also be sure to consult the Stoll Keenon Ogden Coronavirus Resource webpage for additional articles and information related to the latest information on new laws and directives enacted by federal, state, and local governments in response to the Coronavirus pandemic.