UPDATE: Good News! For Sure!

New York, NY — December 28, 2020

The legislation passed Monday December 21, 2020 and signed by President Trump December 27, 2020 contains a provision confirming the deductibility of expenses used in PPP forgiveness. This overrides the IRS notices which denied the deduction of the expenses used to obtain the tax-free forgiveness of the loan.

Good News! – We Think?

New York, NY — December 23, 2020

The legislation passed Monday night by both houses of Congress contains a provision confirming the deductibility of expenses used in PPP forgiveness. This overrides the IRS notices which denied the deduction of the expenses used to obtain the tax-free forgiveness of the loan. 

President Trump has threatened to veto the legislation but not because of this provision.

We will keep you apprised of developments. In the meantime, the advice provided in our December 8th posting regarding making estimates assuming the expenses are deductible continues to be applicable. 

For more details, view our December 8th article.

Please feel free to contact your PW advisor if more information is requested. 

Perelson Weiner is a full service Certified Public Accounting and consulting firm dedicated to serving the needs of successful entrepreneurs, high net worth individuals and families and international companies doing business in the United States. Perelson Weiner LLP is a member of the Center for Public Company Audit Firms and the Private Company Practice Section of the American Institute of Certified Public Accountants (AICPA). The firm is a member of PrimeGlobal, the third largest association of independent accounting firms in the world, comprised of over 350 highly successful independent public accounting firms in 90 countries.