PPP Loans: Update and Completing Forgiveness Applications

Author: Greg White

PPP Loans continue to evolve. Join Greg White has he a provides an update and walks you through completing forgiveness applications.

Publication Date: January 2021

Topics Covered

• Can clients deduct the expenses that are used to produce PPP forgiveness?
  • Are sole proprietors and partners allowed to deduct the expenses entirely?
  • What guidance has the IRS issued?
  • Is the IRS guidance incorrect?
• Update for any Congressional changes
• We'll answer a variety of questions, including:
  • Which clients can file Form 3508EZ?
  • Can my client deduct expenses that were used as "forgivable" costs?
  • What are the limits on owner compensation for S corporations, sole proprietors, partnerships, and C corporations?
  • Are retirement contributions made on behalf of owners? Forgivable costs?
  • Are prepaid expenses forgivable costs?
  • What covered period should my clients pick?
  • How can my clients get full debt forgiveness if they've had reductions in full-time equivalents?
  • How long do I have to submit the forgiveness application?
  • Are medical insurance costs for owners included in forgivable costs?
  • How do I treat EIDL advances?
  • Are spouses and children of an owner subject to the same limits as owners?
  • How are part-time workers treated?
  • How can my clients get full PPP forgiveness even though they cut wages of employees?

Learning Objectives

• Identify the new legislation and how it applies your clients
• Compute the amount of debt forgiveness
• Recognize how to complete the proper form to apply for PPP forgiveness
• Identify remaining areas where we still lack guidance
• Identify the maximum PPP loan
• Identify the cap on EIDL
• Identify the two types of haircuts and the steps involved

Level
Update

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
A basic understanding of tax preparation.

Advance Preparation
None