It was not taxable. So you might want to amend.
by gregmorrissey (2024-02-25 07:42:16)
Edited on 2024-02-25 07:43:28

In reply to: This was not a gift. It changed decision-making  posted by catripledomer

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Or you didn’t meet the qualifications for forgiveness per the IRS.

I’d love to understand the mindset it takes to have the government pay your payroll and select other expenses for two months in a year where revenue was flat and have the audacity to complain about $12k in student loan forgiveness. It was a gift and I’m not sure how you view it any other way.

Here’s the math. Let’s concede that you included the loan amount ($x) in your taxable income. You received $x in taxable income and paid $x in payroll and other approved expenses. $x - $x = $0 so no tax effect.

Now, for nearly all of the other businesses that received PPP loans that were later forgiven.

PPP loan amount: $x
Loan forgiveness taxable income: $0
Expenses: $x
Net income: - $x
$x times their tax rate is the direct to owner benefit of being able to deduct expenses paid for by the government. It was a windfall which dwarfs the student loan forgiveness numbers at both the individual level and in the aggregate.



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