August 2020
Businesses that received loans through the Paycheck Protection Program (PPP) during the initial months of the pandemic are finding that certain expenses allocable to the forgiven PPP loan proceeds are not deductible.
Section 1106 of the Coronavirus Aid, Relief and Economic Security Act (CARES Act) created the PPP, which provides that an eligible recipient of a covered loan could qualify for loan forgiveness if certain criteria are met. Another benefit is that the forgiven loan is not included in taxable income.
