Reminder from the IRS: Expenses Paid with 2020 PPP Loans Can Be Deducted on 2021 Tax Returns
May 2021 Article by:
Michael S. Hampleman & Roman A. Basi
Basi, Basi & Associates at The Center for Financial, Legal & Tax Planning, Inc.
If you are a business owner that received PPP funds but did not utilize them on your tax return, pay close attention to the substance of this publication. The IRS has publicized a safe harbor for certain companies that received first-draw Paycheck Protection Program (PPP) loans but did not deduct any of the original qualified expenses because they relied on direction issued before the execution of the Consolidated Appropriations Act, 2021 (CAA), in December 2020.