- Are you self-employed with no employees?
- Did you apply for a CORVID-19 Paycheck Protection Plan (PPP) loan?
- Did you already receive your money?
Great. Now you need to know how to handle your PPP money so that you qualify for the all-important loan forgiveness!
If you have questions about how to proceed legally and come out a winner, you need straight answers.
That’s exactly what we’ll provide when you read the full article titled Tax Tips: Nine Insights into PPP Loan-Forgiveness for the Self-Employed.
Question #1: Do I Have to Spend the PPP Loan Proceeds?
Quick Answer:
Yes, it appears so. The instructions for line 9 of Schedule A for the SBA Form 3508 PPP forgiveness application states the SBA rule. Read the full article for a complete answer.
Question #2: Should I Put the Loan Proceeds in a Separate Bank Account?
Quick Answer:
With a separate bank account, from which you use the PPP loan proceeds, you can create a perfect paper trail that documents the use of the proceeds. Read the full article for a complete answer.
Question #3: When Do My Eight Weeks Begin?
Quick Answer:
According to the latest interim guidance, and consistent with SBA Form 3508, with no employees, your eight weeks begin on the date the lender disburses the funds to you. Read the full article for a complete answer.
Question #4: Can I Claim Forgiveness for the Business Interest and Utilities Percentage I Pay for My Home Office?
Quick Answer:
Yes. When you claim the home-office deduction on your Schedule C, it reduces the net profits from your business. In other words, the home-office deduction is a business deduction. Read the full article for a complete answer.
Question #5: What Is a Transportation Utility?
Quick Answer:
We have not seen an official definition of a “transportation utility” from the SBA or the Department of the Treasury with respect to the PPP loan process. We’ll explain what is likely going to be the definition. Read the full article for a complete answer.
Question #6: How Does the 75% Work?
Quick Answer:
When you file Schedule C and have no employees, your minimum loan forgiveness under the 75% rule, is straightforward. Take your deemed payroll amount and divide by 0.75. Read the full article for a complete answer.
Question #7. What If I Have Employees?
Quick Answer:
With employees, the calculation of how you qualify for your personal portion of loan forgiveness is unchanged. Read the full article for a complete answer.
Question #8: Will There Be New, Easier PPP Forgiveness Coming My Way?
Quick Answer:
A bill approved by the U.S. House and being considered by the Senate should make it easier for all PPP borrowers to qualify for PPP loan forgiveness. Read the full article for a complete answer.
Question #9: Is PPP Money Still Available?
Quick Answer:
Today there is money available. If you haven’t applied yet, do so immediately! Read the full article for a complete answer.