Year End Planning for Small Business Owners

This is the season for year-end planning for small business owners. For PPP loan recipients, the issue of tax treatment on expenses (usually deductible) and debt forgiven (usually treated as taxable income). If the SBA forgives the debt, it won’t be treated as income; however, the expenses covered by the loan won’t be tax deductible. This article provides answers to questions to optimize a PPP loan forgiveness outcome.