As the tumultuous year of 2020 comes to an end, many small business owners are left wondering what their tax returns will look like. The unpredictable economic damage caused by the COVID-19 led to the passing of the Coronavirus Aid, Relief and Economic Security (CARES) Act. Through the Paycheck Protection Program, or PPP, this act allotted up to $349 billion in forgivable loans to small businesses for payroll assistance and certain other expenses. If your business applied for a PPP loan, you may be wondering about the tax implications.
While loan forgiveness was promised for PPP loans (if at least 60% was used to cover payroll), expenses paid with forgiven PPP loan proceeds are not deductible. That means that expenses that are typically deductible, like utilities and rent, will not be deductible if you used the loan funds to cover them.
Understanding the Addison / Dallas tax implications of PPP loans is a complex issue. Many businesses are still waiting on a response to whether their loans will be forgiven or not and some may not have this answer by the time taxes are due.
If you are trying to manage PPP loan expenses as you prepare your taxes, Paramount Tax is the bookkeeper in Addison / Dallas that you can rely on..
Economic shocks are hard to navigate and the implications of this past year are no different. Trying to understand how the PPP loan will affect your taxes is much more difficult on your own. Our talented team of professional CPAs and tax preparers are here to help. Our bookkeepers work around the clock to ensure our clients receive accurate assistance and credible information. Taxes are already overwhelming; you can expect this year's filing to be doubly frustrating. With help from our expert tax preparers in Addison / Dallas, however, you can rest assured that your taxes will be filed accurately.
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Whether you are filing personal taxes or you own a business, if you are not already using a professional tax and bookkeeping firm, you have most likely already missed out on major tax benefits, deductions and credits. This is because a professional tax and bookkeeping firm utilizes licensed professionals, who can not only advise individuals on personal financial matters but who are qualified to advise businesses, financial institutions, nonprofit organizations and government agencies on a wide range of financial topics. Our strict standards ensure that we understand the complicated tax laws and how to implement strategies that return the most benefits to individuals and businesses. Give {fran_location_name} a call or visit our tax and bookkeeping firm in Addison / Dallas for a free consultation.
