Year End Agreement Reached on Covid Relief – A Little Bit of Info
Some big questions answered. A little bit.
Ok – Congress finally passed a bill to deal with the pandemic relief, stimulus and extenders. And, I hear, it is the 2nd largest bill (by page count) ever to be considered by Congress. So – this post is not nearly as detailed and won’t have all your answers. But – I want to get some info out that has been keeping me, and so many business owners, up at night.
- PPP and business expenses: This bill expressly provides that the intent of the original legislation was that the expenses can in fact give rise to a deduction. (Fed only, the states may differ). For most of my clients with PPP loans, this is critical. And, I was proven wrong – not that it would happen, but I did not expect this to be finalized until the first couple of weeks of Jan. So, I’m happy to be wrong this time.
- Another clarification – EIDL grants to small businesses are excluded from income
- Deferred Payroll Taxes – The bill extends the payback period to December 31, 2021. (Originally was April 30, 2021.)
Like I said, there is so much more, but these are the questions that have been holding people up on making business decisions. Stay tuned for more as the analysis is done and released in the coming days.