Well, it looks like it is final, PPP expenses are not deductible (Just Kidding, they are now deductible!)

1.7.21 Update: The stimulus bill passed in late 2020 made the expenses deductible, Yippee!

The IRS dropped the official guidance (again so we knew they were serious) we have been waiting for…the portion of a PPP loan that is forgiven is not deductible for tax purposes. This means you can not reduce your income by those expenses.

They also addressed the current year questions about what we do with those expenses if you haven’t received official forgiveness yet (but expect to) you cannot deduct the expenses paid with PPP loan proceeds. Hum….

Definitely have a discussion with your tax pro about how this is being recorded in your financials so you don’t get a massive surprise in April.

If you want to geek out with me, you can find the guidance here: https://www.irs.gov/pub/irs-drop/rr-20-27.pdf

Click here if you would like to schedule a time to chat.

Ready to take the next step in your firm’s financial growth?

Unlike other CPAs, we work ONLY with law firms. This means we know your specific challenges and exactly how to solve them.

Visit our services page or contact me to set up a free discovery call and learn more about how we can best meet your needs.

This website uses cookies to ensure you get the best experience on our website. By using our website, you consent to the use of cookies.
You can read more about this on our Privacy and Terms & Conditions pages.