On April 30th, the IRS issued Notice 2020-32, which clarifies the tax deductibility of qualified expenses incurred during the eight week period of the PPP loan. The proceeds from the PPP loan used for qualified expenses incurred for payroll, rent, utilities and mortgage interest would qualify that portion of the loan to be forgiven. However, for the portion of the PPP loan forgiven, taxpayers will not be allowed a tax deduction for those qualified expenses.
We are constantly monitoring this ever changing landscape and know this is a difficult time for you and your business. We are here to assist with any questions on PPP loans or COVID-19 legislation.
To view other communications from the firm in relation to COVID-19, visit our blog.