New COVID-19 Bill Addresses Deductibility of Expenses Paid With PPP Loans

The new federal COVID-19 stimulus package includes language that addresses the deductibility of expenses paid with Payroll Protection Program (PPP) loans.

According to this summary by OMA Connections Partner Calfee, the new bill overrules the IRS’ previous notices and provides tax-free forgiveness of PPP loan proceeds and deductibility of expenses paid with PPP funds. This rule applies to all borrowers, including those that have already applied for forgiveness. 12/22/2020