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Old 08-10-2020, 10:20 AM
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tn0087 tn0087 is offline Member
Join Date: Feb 2011
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Default To Anyone Who Received PPP Funds, How Are You Tracking Expenses?

Assuming PPP forgiveness goes through as planned and funds used from PPP are forgiven, does anyone know yet what that does to expenses paid for with that PPP income in 2020?

Hypothetical 2019 Example:
- 2019 gross profit is $15,000
- 2019 expenses are $5,000
- 2019 net profit is $10,000

- 2020 PPP loan forgiveness is $2,083.

If I make the same $15,000 gross for 2020 including my forgiven PPP income, my gross drops to $12, 917. With the same $5,000 expenses, my net profit drops to ~$8,525.

Can we still write the full $5,000 expenses against the "adjusted" gross even though some of those expenses were bought with tax free money? Are we supposed to be tracking what is bought with PPP income and what isn't? Or am I (hopefully) just really misunderstanding this....
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covid-19 and daycare, loan, ppp, tax advice, tom copeland

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