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Owner Compensation Replacement

msmith7305
Level 5

Since IRS has decided that the loan is non-taxable and the qualified expenses paid with the proceeds are deductible, it is a great double dip.

However, what happens with the Schedule C filer with no employees? He qualified for the loan so are we now allowed to take a Sched C deduction for the Owner Compensation Replacement he paid himself?

Same thing with General Partners in a Partnership with no employees?

I have looked high and low for something on this and have found nothing.

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2 Replies 2
Just-Lisa-Now-
Level 15
Level 15

Not income, and it wouldnt have been a deduction anyhow, so no change there.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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BobKamman
Level 14

IRS did not decide that.  Congress told them to do it that way.  The vote was 359-53 in the House and 92-6 in the Senate.  And of course, the President had to sign it into law.  

 

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