The new COVID-19 assistance package, signed by President Trump on 12/27/2020, clarifies some issues related to existing PPP Loans. Contrary to previous IRS guidance, expenses paid with forgiven PPP Loan funds WILL be tax-deductible! In the Act, Congress clarified its intent that “no deduction shall be denied or reduced, no tax attribute shall be reduced, and no basis increase shall be denied, by reason of the exclusion from gross income” of the forgiven PPP proceeds.

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