Level 15

Tracking PPP funds and their use

Forum|Forum|6 years ago
May 1, 2020
3 replies
19 views

We had a question about how to track the PPP funds, but it was for proving they got used as per the program's intent.

Now the IRS is stating the use of the funds means those costs are not considered deductible expenses, to avoid double-dipping (got money not reportable as income if forgiven and then also trying to take a deduction):

https://www.journalofaccountancy.com/news/2020/may/expenses-reimbursed-by-ppp-not-tax-deductible-paycheck-protection-program.html

This topic has been closed for replies.

abctax55

Level 15

There's much discussion on other forums that the IRS position may be overridden by Congress.

At this stage, given the fluidity of the situation I would still track things.

HumanKind... Be Both

George4Tacks

Level 15

Hi there,

You’ve come to an Intuit site supporting Lacerte, ProSeries, or ProConnect Tax Online products. Please visit the QuickBooks Help site for the answer to your question.

Cheers!

😀Sorry, I just couldn't resist!😋

Answers are easy. Questions are hard!

sjrcpa

Level 15

You still have to track them if you want forgiveness.

The more I know the more I don’t know.

qbteachmtAuthor

Level 15

"You’ve come to an Intuit site supporting Lacerte, ProSeries, or ProConnect Tax Online products."

I posted in the Tax Talk section, because we know those doing the tracking are so likely to get this wrong or to be upset when the reality hits the fan. And it's just another developing kink in the ointment of Relief programs.

Spanked by the tax master, all in good fun 👋

Don't yell at us; we're volunteers

George4Tacks

Level 15

Not a spanking. Really I was making fun of the format and workings of this wonderful new forum.
Yes, you need to keep track of the PPP expenses, Maybe a new expense account with subs for the various things it can be used for. CA has not yet conformed, so any loan forgiveness is not an income. The net for fed and state of CA is a zero that must be accounted for.
The All-Star from MT raised a good question.

Answers are easy. Questions are hard!

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