One-Minute Tax Update: Payroll Protection Program Update: Tax Deductibility Rule

Transcript:

Julio Gonzalez with Engineered Tax Services doing our One-Minute Tax Update. And for a lot of small businesses, I know they thought the PP Funds would ultimately allow those expenses that are paid by those funds to be tax deductible. And IRS and Treasury came out last week and said that they will not be tax deductible. And so ultimately, depending on what state you're in, you could be giving the government 50% back just from tax perspective, and ultimately, you know, now Congress and senate it's talking about fixing that or changing that. So there's talk about it because I do think that a lot of small businesses would not have taken the proceeds and would have gone live in alternative program like the SBA seven eight program or the main street program to handle these deficiencies. So they're talking about it. We'll keep you posted. As soon as we hear something.

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