PPP1 is winding down but for some there are still considerations. Since the tax liability on the PPP loan has been eliminated, but the expenses used to offset the PPP1 funding can be deductible, this could create a Net Operating Loss. The CARES Act included a Net Operating Loss Carryback feature. In short, if your financial reports reflect a loss since you are not counting the PPP funds as income, but are deducting the expenses, a business could file an amended return for a prior year when you paid taxes and inject cash back into your company.
Also, PPP2 is in full swing. Some businesses might not understand that they could be eligible for funding. Let us help you with these tax issues and your PPP2 questions, as well as learn about how we help our clients. We provide more than tax, accounting and assurance. We help clients plan their next steps, overcome obstacles and evaluate opportunities.
Let Us Help
If you have questions, please contact our office at (801) 328-2011 on PPP loans, the forgiveness process, and possible funding.
