IRS Issues Ruling Allowing Borrowers to Deduct Expenses Paid for With Forgivable PPP Loans
Post date
January 07, 2021
Body
This morning, January 7, the Internal Revenue Service issued Revenue Ruling 2021-02. This guidance implements the SWACCA-advocated statutory changes to the Paycheck Protection Program (PPP) allowing deductions for the payments of eligible expenses made from a forgivable loan under the PPP. Recipients of PPP loans should discuss this information with their tax preparer.
SWACCA lobbied for these changes to tax law as part of the COVID-related Tax Relief Act of 2020 that was part of the Consolidated Appropriations Act, 2021 signed into law on December 27, 2020.