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PPP expense deductibility and forgiveness raises basis, other issues

The Consolidated Appropriations Act, 2021 (CAA 2021), H.R. 133, Division N, Section 276, provides that deductions are allowed for otherwise deductible expenses paid with the proceeds of a Paycheck Protection Program (PPP) loan that is forgiven and that the tax basis and other attributes of the borrower’s assets will not be reduced as a result of the loan forgiveness. CAA 2021 passed both houses of Congress on Dec. 21, and President Donald Trump signed the bill into law on Dec. 27.


https://www.journalofaccountancy.com/news/2020/dec/ppp-expense-deductibility-forgiveness-raises-basis-issues.html


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