December 3, 2020

A quick update hot off the press: 

I received information today from the AICPA, my industry trade group, that it’s a strong probability that Congress will pass PPP 2 very soon, this month: 

  • This round will be restricted to businesses with a 25-30% drop in revenue
  • PPP 2 will have a similar framework as PPP 1. The intent of the program is the same, to keep people employed and struggling businesses going given a high degree of economic uncertainty at this time due to Covid.  The loan amounts will continue to be based on payroll costs.
  • This relief package will also address the PPP 1 issue of the deductibility of expenses.  IRS has ruled that expenses paid with forgiven PPP loan proceeds are not tax deductible.  Congress did not intend this, so it will be fixed in this relief bill.   
  • The PPP 1 loan forgiveness application will be further simplified for loans less than $150k.  So let’s continue to hold those forgiveness applications – no rush!!

This is all mostly welcome news, hopefully it sticks. 

If you think you’ll qualify, now is the time to start organizing financial information to be ready for the application process.  It’s expected that Treasury and SBA will move very quickly to get moving after the legislation is passed.  Please contact me if I can assist or if you have questions as this unfolds.  Stay tuned!

Eric

Eric Johnson, CPA

Tel. (702) 941-7787

www.ericjohnsoncpa.com

eric@ericjohnsoncpa.com

Eric Johnson CPA LLC

2850 W Horizon Ridge Pkwy #200

Henderson, NV 89052

Near I-215/Eastern Ave. exit; only 2 miles via Eastern to Coronado Center at W. Horizon Ridge. The “Regus” building.

Scroll to Top