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Can an S corporation owner with a wage over $100K who has already received the PPP payment also qualify for a second PPP payment based on a Schedule C of $150K? $20,833?

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Level 2
 
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Level 8

2 separate entities... 2 separate PPP applications in my opinion... which is just that.. my opinion.  but the actual forgivable usage for the over $100k peeps is limited to the $15,385... in both entities, as i noted above.

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Level 12

I don't know if the actual question you have is clear, or how this relates to using ProSeries for income tax preparation and filing?

Yes, some people have multiple businesses. Yes, multiple businesses can apply. No, over $100k is not used; there are limits. Yes, you would have to Qualify. How does "$20,833" apply here?

Is what you really want to know: Can a person keep getting free money multiple ways from the public? Answer: apparently so.

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Level 2

$20,833 is the maximum PPP payment ($100K/12*2.5) for a Schedule C filer.

The same taxpayer's S corporation received the equivalent same payment as a corporate filer.

This forum makes you keep sentences short so I could not explain better. The question is can one taxpayer apply for both payments. 

 

 

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Level 12

"This forum makes you keep sentences short"

Well, you put your question as the Title, which is a limited space. Then, you left the input panel for Question Text completely blank 🙂 And this is a huge space.

There is a lot of available space, but it is for each type of input.

"The question is can one taxpayer apply for both payments."

 You don't have just one taxpayer. The person you are working with is an employee of a corporation and also runs a sole proprietorship. That = 2.

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Level 15

It's not one taxpayer, but two -the S Corporation and the sole proprietor.


ex-AllStar
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Level 8

actually.... the owner/sole proprietor can not get $20,833 in salary.  Additionally... he can't even get 8,333.33 *2 or 16,666.66.  he can only get $100,000/52  ($1923.08) x 8... even after the update to payroll costs being 60% not 75%.

One of the reasons they lowered the Payroll Costs part down from 75% was because it was mathematically impossible to meet the 75% if you had a single employee who made over $100k, or a sole proprietor (with no employees or insurance or retirement) who made over $100K.  They used MONTHS  to get the loan … and used WEEKS to calculate the consumption/use of the funds.  

($100,000 /12 x 2.5) x 75% = $15,625.

($100,000/52) x 8 =  $15,325

so you could not ever reach 75%.   And still the limitation used in the forgiveness calculation  for someone over $100K  is the $15,325.... but that will cover the 60% threshold at least.

 

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Level 2

Sorry to take your time. I stepped on someone’s toes. This is my first rodeo. The question was Can an S corporation owner with a wage over $100k who has already received the proper PPP payment for an S corporation also qualify for a second PPP payment based on a Schedule C with line 31 in excess of $100K? Is the S Corporation owner also entitled to another $20,833 for PPP, or would that be viewed as double dipping? The sole proprietor is another different taxpayer. Is the $100,000 cap per human or per taxpayer?

There is no problem getting the loan from the bank. The trick is to receive for forgiveness and not be accused of double dipping later.

 

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Level 12

We all answered that you are examining this from an invalid perspective. This is the problem with your perspective: "Is the S Corporation owner also entitled to another $20,833 for PPP"

The S Corp is an entity. That entity has its qualifications and provisions.

Your Sole Proprietor has a different qualification and provision.

"There is no problem getting the loan from the bank. The trick is to receive for forgiveness and not be accused of double dipping later."

Qualification or not, that is between the bank, the borrower, the program manager, etc.

And forgiveness or not is yet to be determined.

And of Course this is double-dipping. Everyone can see that this is double-dipping.

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Level 12

Let me try it a different way:

The S Corp applied and gets the provision, and uses it for their payroll needs. The Employee(s) benefit. Stop looking at the S Corp now, and move on.

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Level 2

and the answer is???

Does the S corp owner with a Schedule C get two PPP payments or just the one because of the $100K limit?

 

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Level 12

The S Corp Owner gets nothing.

The S Corp, as an employer, can apply for this because it has Employees.

You have the wrong perspective.

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Level 2

Right.

To continue, the S corp got a PPP for a bunch of employees plus the owner who made $200K but was limited to $100K in the calculation. No problem, so far.

The issue is the owner is also a sole proprietor with a Schedule C, line 31, of $150K.

Can this same human, S corp president and sole proprietor, get a second PPP for the maximum amount for a sole proprietor  when the income amount is limited to $100K?

 

 

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Level 12

You've asked about PPP on a Tax Preparation forum for using ProSeries software. We've all done the best we can to provide an answer.

I recommend using a web search, such as googling:

owner of multiple businesses ppp

You will find answers there that address your question.

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Level 8

2 separate entities... 2 separate PPP applications in my opinion... which is just that.. my opinion.  but the actual forgivable usage for the over $100k peeps is limited to the $15,385... in both entities, as i noted above.

If an answer solves your issue, click on the "Accept as Solution" button! Makes it easier for people to find answers to similar questions that have already been posed.

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