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PPP Expenses are Not Tax Deductible

Posted on November 24, 2020 Published by

We recently came across this helpful article from RuderWare about PPP Expenses that are Not Tax Deductible. The IRS has re-affirmed their stance on this subject, which is talked about in more detail.

Specifically, the IRS re-affirmed its stance that taxpayers may not deduct payments for otherwise deductible business expenses. Things such as payroll, rent, covered utility payments, etc. if those payments are made using Paycheck Protection Program (PPP) funds. Also, if the company “reasonably expects” to have their PPP loan forgiven.

Again, please feel free to read the article from RuderWare, and reach out to us with any questions you may have around how PPP Expenses are Not Tax Deductible.

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— Meghann Kasper, Chief Credit Officer, Bank First
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— Bill Beardsley, President, Michigan Business Connection
“By questioning some of our methodologies, Enlighten has helped us say, ‘Okay, this is where we need to train staff better and focus on so that they understand what they're doing better.”
— Robert McPherson, VP of Risk Management, Peoples State Bank
“The organization of the communication — before, during, and after the reporting process — was certainly better with Enlighten than what I've experienced with a lot of auditors.”
— Bill Beardsley, President, Michigan Business Connection
“The staff at Enlighten have been available for questions, in addition to the engaged work that they do. They've been very helpful as a resource beyond the major audit.”
— Meghann Kasper, Chief Credit Officer, Bank First
“Enlighten gives us a very good second set of eyes on our transactions. They're not afraid to challenge us on some of the work that we've done, which is what is needed. I don't need to pay somebody to tell me I'm good, I need to pay somebody to tell me where I've made mistakes.”
— Robert McPherson, VP of Risk Management, Peoples State Bank
“Enlighten provided industry best practices that weren’t going to show up in an audit report. They would say, ‘Hey, I noticed you do this. This is really unique, you do a really great job of it.’ And then they might add, ‘Some other clients that I have are doing something like this.’”
— Bill Beardsley, President, Michigan Business Connection
“By questioning some of our methodologies, Enlighten has helped us say, ‘Okay, this is where we need to train staff better and focus on so that they understand what they're doing better.”
— Robert McPherson, VP of Risk Management, Peoples State Bank
“The organization of the communication — before, during, and after the reporting process — was certainly better with Enlighten than what I've experienced with a lot of auditors."
— Bill Beardsley, President, Michigan Business Connection