IRS Issues Guidance on Timing of Non-Deductible Expenses with PPP Loans
The IRS recently issued guidance regarding the timing of non-deductible expenses related to Paycheck Protection Program (PPP) loans in Revenue Ruling 2020-27.
Included in the guidance is that eligible expenses used or to be used to obtain loan forgiveness will be non-deductible in the year the taxpayer reasonably expects to be reimbursed in the way of PPP loan forgiveness whether or not the loan is forgiven in 2020 or 2021.
It is important to note that members of the Senate Finance Committee did not support the guidance so it is possible that changes may be made to the guidance.
For further details, click here to read the IRS guidance in full.