A New Round of COVID-19 Relief Announced
Dear Clients and Friends –
Just in time for Christmas, Congress brought us a new round of COVID-19 relief today. Turning coal into diamonds, there are provisions of this act which are a benefit to taxpayers. A few highlights to note:
- Congress fixed the deductibility of PPP expenses. Business expenses paid with PPP loan funds are now tax deductible, effectively making the 2020 PPP funds tax exempt income.
- A new round of PPP funding was released. PPP2 will be for eligible first time borrowers and to certain businesses who previously received a PPP loan. Qualified businesses must show a 25% gross revenue decline in any 2020 quarter compared to the same quarter in 2019. 501c(6) businesses may now also qualify for a PPP loan.
- An increased unemployment supplement for $300 per week was added through March 2021.
- Often cited, a $600 stimulus payments to individuals was approved.
The elves at KT will be working to read the full bill when signed by the President and we will be ready to consult on questions.
While we work through the details, we’d like to share an article with a more in depth summary of provisions of the bill: Stimulus Payments, Paycheck Protection Program Expense Deductibility Headline Tax Changes In Latest COVID Relief Package (forbes.com)