The Covid relief bill grants borrowers in the Paycheck Protection Program their wish: tax-free forgiveness of the loan, along with the ability to deduct covered expenses.
Whether states will permit those write-offs, along with tax-free forgiveness, remains up in the air. That means businesses may still face surprise taxes on their state tax returns.Letizia Le Fur | ONOKY | Getty Images While the federal Covid relief bill addresses a key concern for small businesses with forgivable loans, these firms could still face a tax hit — this time on their state returns.
In addition to pledging stimulus checks to American households and providing a $300 boost to unemployment payments, the new Covid bill offers aid to ailing small businesses in the form of aGenerally, borrowers may be eligible for PPP loan forgiveness if at least 60% of the proceeds go toward payroll expenses. Partial loan forgiveness may be available to those who fall short of the threshold.
Source: Entertainment Trends (entertainmenttrends.net)
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