It’s tax season again, and we’ve been talking a lot about the new round of Payroll Protection Program – PPP – funding available to those business most affected by the COVID-19 pandemic.
Dunham Tax Professionals keeps this blog in an effort to inform you – in as timely a manner as possible – the things you need to know about the new round of funding and by now, we know that new SBA and IRS guidelines indicate that PPP funding is to be used for the following business expenses:
- Payroll expenses
- Mortgage interest on business location
- Rent on business location
- Utilities payments, including transportation, electricity, gas, telephone and internet services
- Operational expenses, e.g., HR, software, cloud computing, or accounting needs.
- Property damage costs.
- Supplier costs
- Worker protection expenditures, such as masking and distancing compliance protocols; safety guards and plexiglass
Previously, anything you spent your PPP loan on was not going to be tax deductible, but now, however, these expenses are tax deductible. Simply put, your PPP loan will not affect your tax filing process.
And while this is obviously great news, it is noteworthy that currently, there is not any change in the guidance for state and local tax treatment of PPP funds. Therefore, be sure to check with your own State and local tax authorities for additional information.
That’s where we come in: Dunham Tax Professionals always point out the importance of consulting with people who will help you through tax uncertainties – every step of the way. And now more than ever, we’re here for you.
Make an appointment today.