We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Paycheck Protection Program and Deductions.
- Authors
Commito, Thomas F.
- Abstract
On November 18, 2020, the IRS issued Revenue Ruling 2020-27, holding that a taxpayer computing taxable income on the basis of a calendar tax year may not deduct eligible expenses in their 2020 tax year if, at the end of the 2020 tax year, the taxpayer had a reasonable expectation of reimbursement in the form of covered loan forgiveness based on the eligible expenses they paid or accrued during the covered period. However, on the same date, the IRS issued a safe harbor revenue procedure. The revenue ruling discusses two situations in which a taxpayer received a Paycheck Protection Program loan in 2020 and then paid out these expenses, including payroll, mortgage interest, and rent, that are eligible expenses under Section 1106(a) of the CARES Act.
- Subjects
CORONAVIRUS Aid, Relief &; Economic Security Act (U.S.); DEBT cancellation; REVENUE rulings; INCOME tax; MORTGAGE rates
- Publication
Journal of Financial Service Professionals, 2021, Vol 75, Issue 2, p6
- ISSN
1537-1816
- Publication type
Article