Here’s the text showing how the deductibility of the expesnes used for PPP Loan forgivness will be handled (great news):
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Really great news. What about funds from Cares Act PRF 1 and 2?
Paulie,
Can you please share with us where did you get this information as my my accountant wants to see the full article.
Thanks
Raman
Here’s the text of the bill:
CaresAct funds would likely be taxable as revenue.
Thank you for the information. This should be a big relief for lot of us.
Raman
Thank you Paulie.
With this new legislation, it stands to reason if the expenses are deductible, the forgiven PPP proceeds treated as taxable income. I have been checking the Journal of Accountancy but there has not been an updated. I cannot make the journal entries work if the forgiven proceeds are not taxable and eligible expenses are deductible. Debits do not equal credits!
Correct, it makes not sense. Normally, a forgiven loan converts to income. But Congress has made it clear to not let that happen either via the language in the bill.
Could we include the CAM charges in the utility?
Paulie, Do you have any steps and advice how and where to apply for Provider Relief Fund for loss of income in 2020 due to decrease in patients.
Thanks
Raman