Submitted By: someone
Answered: January 17, 2021 8:11 pm

Are business expenses covered by forgiveness of Paycheck Protection Program (PPP) loans deductible?

The Consolidated Appropriations Act, 2021, specifically allows businesses to deduct all of their expenses to the extent otherwise allowed under tax law. This includes expenses covered by PPP loans that are forgiven.

Tax Glossary

Amount realized

A statutory term used to figure your profit or loss on a sale or exchange. Generally, it is sales proceeds plus mortgages assumed or taken subject to, less transaction expenses, such as commissions and legal costs.

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