Even though the forgiveness of a PPP loan doesn’t result in taxable income, there’s still reporting requirements on 2021 returns. The IRS says there are 3 options for handling the tax-exempt income: (1) treat it as such when expenses paid or incurred, (2) when an application for PPP loan forgiveness is filed, or (3) when the forgiveness is granted. Instructions to 2021 returns provide details. For example, instructions to Form 1120-S for S corporations spells this out in the “What’s New” section. #IdeaoftheDay
Barbara Weltman
Big Ideas for Small Business, Inc.
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It's important to take care of ourselves and take steps to nourish ourselves--body, mind and soul. We may have to do this in different and creative ways now that many of us are staying at home. It's still important that we take time for ourselves. #selfcare #Health