Number Crunchers, LLC

11/09/2022

Did you know that if you own a commercial building and you get a solar panel system, you can get a huge tax write off? Something to think about!! If you need a referral, I know a guy in Louisiana. Comment below and I can get you his information.

12/30/2021

Yup

02/06/2021

Second round of PPP available now. Must show a 25% loss in a quarter of 2020 (compared to the same quarter in 2019.) Contact the lender that approved your first round PPP

12/29/2020

On December 27, 2020, President Donald Trump signed an end of the year relief bill providing $900 Billion of relief to individuals and businesses. Below are the highlights of the bill:

Paycheck Protection Program (PPP) expenses are deductible. This is a reversal of the Internal Revenue Service’s previous position and benefits loan recipients.

PPP loans under $150,000 will be eligible for a 1-page simplified forgiveness application. The new application is not available yet. If your loan is between $50,000 and $150,000, it is advisable to wait for the new form and guidance before applying for forgiveness.

EIDL advance amounts will NOT reduce your PPP forgiveness amount. Most businesses received up to $10,000 for their advance. As a result of the most current bill, these funds will not have to be repaid as part of the PPP forgiveness process.

12/28/2020

Trump signed the 5000 page bill. My understanding is that now (regarding the PPP):
1. Deductions paid for with PPP money CAN be expensed

2. The EIDL advance is forgiven and will not go against your PPP forgiveness amount

But keep in mind, this JUST happened, so it will probably take a minute for the SBA (and lenders) to catch up...

12/22/2020

This is what we are hearing:

Important points from the article based on the new bill.

1. Bill requires SBA to issue regulations within 10 days of the passage of the bill.

2. One PPP loan at a time. It appears that you need to pay off your first PPP loan (or have it forgiven) in order to be eligible for the second round.

3. Expenses paid with forgiven PPP funds are now completely tax deductible.

4. Legislative intent was for full forgiveness of PPP loan not partial ....Your final forgiveness amount will no longer be reduced by your EIDL grant balance.....application will be retroactive ......

12/22/2020

Just hearing news that with the new stimulus bill, the EIDL "grant" (advance of $1000/employee) will NOT be deducted from the forgiveness amount.

12/17/2020

PPP loan:
Per CPA: Move amount you expect to be forgiven to other income. Leave deductions alone.

12/05/2020

https://www.journalofaccountancy.com/news/2020/dec/expenses-used-for-ppp-loan-forgiveness-deductible-or-not.html?utm_source=mnl:cpald&utm_medium=email&utm_campaign=04Dec2020

Two experts look at the issue of the deductibility of expenses paid with PPP loan funds and conclude that they should be deductible.

12/02/2020

From unknown source, but hope this is true:

NEW BILL UNVEILED TODAY...
The $908 billion bipartisan relief bill being unveiled today has $288 billion for small business, including more PPP and EIDL. The relief bill also has $180 billion for enhanced unemployment insurance and $25 billion for rental assistance. Rep. Gottheimer says the bill includes a second round of PPP, will make sure businesses won't be taxed on the first round of PPP and has simplified loan forgiveness for $150k or less. The lawmakers pushing the relief proposal have not released specifics other than how much they're willing to spend. They're calling it a "framework". Romney says the group putting together the relief bill has been in touch with Mnuchin, who hasn't approved or disapproved but has given advice.

This is by no means a sure thing. (SOURCE)

11/20/2020

Apparently, the IRS released this yesterday: "A taxpayer that received a covered loan guaranteed under the PPP and paid or incurred certain otherwise deductible expenses listed in section 1106(b) of the CARES Act may not deduct those expenses in the taxable year in which the expenses were paid or incurred if, at the end of such taxable year, the taxpayer reasonably expects to receive forgiveness of the covered loan on the basis of the expenses it paid or accrued during the covered period, even if the taxpayer has not submitted an application for forgiveness of the covered loan by the end of such taxable year." So, take the amount of your PPP, deduct your EIDL advance, and the remaining amount you need to add to your expenses before you file your 2020 taxes (assuming you spent your PPP funds correctly.)

11/14/2020

Just saw this come through