Businesses can now deduct expenses paid for with the proceeds of a forgiven pandemic relief loan, the IRS said.
The IRS, in guidance issued Wednesday, reversed its original position that prohibited businesses with Paycheck Protection Program loans from “double-dipping” by paying expenses with a forgivable loan, then writing off those expenses. Congress, in the latest virus relief bill, explicitly stated that such expenses were deductible, forcing the IRS to flip.
- Read the revenue ruling here.
- PPP facilitated hundreds of billions in government-backed, forgivable loans to help struggling businesses keep their workers employed during the pandemic. The ...