qbteachmt
Level 15

Forgiveness update from last week:

https://www.sba.gov/sites/default/files/2020-10/PPP%20--%20Loan%20Forgiveness%20FAQs%20%28October%20...

"In its answer, found in Q&A No. 4 in the General Loan Forgiveness FAQs section, the SBA explains that borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from the loan’s origination, depending on the borrower’s agreement. But the SBA also reminds borrowers that loan payments are deferred only until 10 months after the last day of each borrower’s loan forgiveness covered period.

For example, the SBA wrote, a borrower with a covered period that ends Oct. 30, 2020, has until Aug. 30, 2021, to apply for forgiveness before loan repayment begins."

IRS notice for not including expenses for tax purposes when they are paid by PPP funds:

https://www.irs.gov/pub/irs-drop/n-20-32.pdf

You will see the payouts on deposits referred to as "grant advance loan" because there was no intent to report it for taxes, apparently.

Lender instructions not to report this as Loan or Debt forgiveness:

https://www.irs.gov/pub/irs-drop/a-20-12.pdf

This is a developing scenario, as usual.

You can watch all of this for yourself by bookmarking the SBA and IRS sites.

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