Resources

Client Alerts, News Articles, Blog Posts, & Multimedia

Everything you need to know about BMD and the industry.

Did You Know that Certain Expenses May Not Be Deductible if You Received a PPP Loan?

Client Alert
May 1, 2020

On April 30, 2020, the IRS issued a Notice stating that for Federal income tax purposes, certain expenses that would otherwise be deductible in a taxpayer’s trade or business may not be deductible if the taxpayer received a loan under the Paycheck Protection Program (“PPP”).

Specifically, the IRS states that no deduction is allowed for an otherwise deductible expense if the expense’s payment resulted in forgiveness of the PPP loan pursuant to Section 1106(b) of the CARES Act. The income associated with the PPP loan forgiveness is also excluded from gross income pursuant to Section 1106(i) of the CARES Act.

For example, if a business received $400,000 in PPP loan proceeds and used the proceeds to pay $350,000 in payroll expense, $50,000 in qualifying rent and utility payments, and met all other applicable terms and conditions within the 8-week applicable period, the entire $400,000 would be forgiven. Therefore, the $400,000 PPP loan proceeds are not included in gross income. However, the $400,000 in payroll, rent, and utility expenses would also not be deductible for Federal income tax purposes.

For additional questions related to the taxability of specific income and expenses in relation to the PPP loan forgiveness, please contact BMD Tax Law Attorney Tracy Albanese at tlalbanese@bmdllc.com or (330) 253-9195.

PPP Loanpaycheck protection programsmall businessFederal Income TaxdeductionsIRSTracy L. Albaneseexpenses
Client Alert

Will Student-Athlete Collectives Survive NIL Changes?

January 20, 2025By July 2025 the landscape of student-athlete funding will look nothing like the current landscape, so preparing now is a must. If you are a student-athlete, the parent of a student-athlete, a university/college, or “booster”, it behooves you to understand these evolving issues.Client Alert

Ohio's Recent Rule Changes to Administration of Immunizations, Outpatient Pharmacy Delivery, and Mobile Response Services

January 20, 2025The Ohio Board of Pharmacy (“BOP”) and Ohio Department of Mental Health and Addiction Services (“OMHAS”) recently posted notices of Ohio Administrative Code rule changes related to the administration of immunizations (BOP), outpatient pharmacy delivery services (BOP), and mobile response and stabilization services (OMHAS).Client Alert

HOA Construction Project Do’s and Don’ts

January 20, 2025Local regulators can approve new construction, but if a resident contacts their homeowners association there may be trouble. Fences, yard alterations, and backyard decks do not have to be such a hassle and a point of conflict. Find out general Do’s and Don’ts to help HOA residents avoid issues in this article by BMD Partner Scott Heasley.Client Alert

New Ohio Recovery Housing Rules Take Effect January 1, 2025

January 2, 2025Ohio’s new recovery housing rules, effective January 1, 2025, require certified community behavioral health providers to refer clients only to accredited recovery housing residences listed on the statewide registry.Client Alert

SCOTUS to Weigh In on Medicaid Beneficiaries’ Right to Choose their Provider

January 2, 2025The U.S. Supreme Court will hear arguments this spring on whether Medicaid beneficiaries have an enforceable right to choose their healthcare providers without state interference, as outlined in Section 1902(a)(23) of the Social Security Act. This case stems from a South Carolina petition challenging a Fourth Circuit ruling that blocked the state from terminating Planned Parenthood’s Medicaid provider agreement.
Older posts
Newer posts