show me the money!!

Stimulus Calculator icon.jpg

Click on the icon above to go to the IRS website to check on your Stimulus Payment.

This may take a while to populate based on record IRS website activity.

paycheck protection package loan proceeds tracker

According to the Small Business Administration's Interim Final Rule - a copy of which can be obtained here - the PPP Loan proceeds used for Payroll Costs must be carefully documented so that the Borrower may apply for loan forgiveness.

Below is a spreadsheet that can be downloaded to track each disbursement from the PPP Loan, with percentage calculations so that you can monitor the 75% Payroll Cost threshold for loan forgiveness.

PPP Loan Tracker icon.jpg

Click on the Template image above or here to download from Google Drive

potential unintended consequences of the paycheck protection program

Unintended Consequence icon.jpg

Not quite as dire as the unfortunate individuals above, the Paycheck Protection Program may come with some unintended consequences.

Read the article by clicking here.

So ... Are Expenses Paid With Forgiven PPP Loan Proceeds Deductible?

I Believe They Are ... And Here is Why ...

Essentially IRS has concluded that any deductible expenses paid with forgiven Paycheck Protection Program loan proceeds are not deductible under the tax principle that expenses paid for with tax-exempt funds are not deductible.

However, there are tax precedents that fly in the face of IRS rulings on this matter, specifically the minister's housing or parsonage allowance.

IRS specifically includes the deductibility of mortgage interest and real estate property tax when paid for using amounts excludible from gross income.  IRC Sec 107 and IRS Publication 517

Read my in-depth discussion of this and how to present it on your tax return here.

 

UPDATE:

Congress has legislated that expenses paid with PPP loans that are forgiven are now deductible.  The Consolidated Appropriations Act Sec 276 states that "no deduction shall be denied, no tax attribute shall be reduced, and no basis increase shall be denied, by reason of the exclusion from gross income provided by" the CARES Act PPP loan forgiveness provisions previously passed.

You will need to know your stimulus payment to complete your tax return

Here's How ...

Next ...

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And you are Authorized ... Fill out the following ...

The information for your Stimulus Payment ... aka Economic Impact Payment ... aka Recovery Rebate Credit should populate.

Use that information to complete the Recovery Rebate Credit worksheet for Form 1040, page 2, line 30.

© 2019 by Gregory L Buhrow CPA; Created with Wix.com

Gregory L Buhrow CPA PC

Address: 10945 Estate Lane

             Suite 212

    Dallas TX  75238-2317

Info:  glbcpa@gmail.com

Tel:  214.327.0700

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