Our compliance team is trained and ready to complete your financial institution's specific requirements surrounding the 购买力平价贷款宽恕 Application. We'll optimize and complete the ever evolving application while you continue to focus on business operations. Click here to engage us to complete your 购买力平价贷款宽恕 Application.
Increase in 税able Income for Recipients of 购买力平价的贷款s who Receive Forgiveness
Within the first month of the 关心行为 passage the IRS issued Notice 2020-32. If you have been participating in our 客户端 Zoom Events (click here to view the recordings), you may recall some intentional discussions around this subject. This Notice clearly sets forth the IRS position that if a 购买力平价的贷款 is forgiven, then the expenses associated with said forgiveness are not going to be deductible for income tax purposes. 购买力平价的贷款 forgiveness has been deemed a class of exempt income, 通过法令, as the 关心行为 specifically states that loan forgiveness shall not constitute taxable income. This non-deductible expense issue stems from the overarching tax principals around two concepts: 1) Expenses associated with producing tax-exempt incomes and 2) 税-exempt income received by a taxpayer that is earmarked for a specific purpose that would typically result in ordinary and necessary business expenses. Such otherwise deductible expenses attributed to the tax-exempt income are no longer deductible in both of these situations. This effectively results in taxable income up to the amount of loan forgiveness, except for potential strategies surrounding self-employment reporting. Although there is some controversy around this non-deductibility interpretation, Congress has not taken action. We are advising our clients to consider this significant increase in taxable income when making estimates and planning for their 2020 income tax. Please reach out to your CPA for additional discussions and to explore advanced income tax planning in light of this potential burden.
购买力平价贷款宽恕 Applications Processing
Banks are starting to accept 购买力平价的贷款 forgiveness applications. This process can be quite simple or incredibly complex depending upon the facts and circumstances. 不管, the document retention and substantiation requirements alone require a heightened level of intentionality. If you would like Blankenship to help you process your 购买力平价的贷款 forgiveness application you can reach out to your CPA to get our team moving, 或者只是为了方便 click here and we will reach out to you to discuss your unique situation and find the fastest and easiest route to forgiveness. We have developed a plan that maximizes forgiveness while mitigating the non-deductibility issues, 正如以前讨论的, that our consulting team can potentially apply to your specific forgiveness application.
6月16日th, the SBA released an updated 购买力平价贷款宽恕 Application following Congress passing the PPP Flexibility Act in early June. This new form addressed many open questions, 创建一个EZ Form选项, and overall took many pro borrower positions. We updated our 购买力平价贷款宽恕 Blueprint, answered the related new questions, and then talked through this on a Zoom event recorded June 25. 你可以看到 three previous Relief Perspective event recordings here.