Paycheck Protection Program

01/15/2021 - Wisconsin clarifies they will not follow federal rules on deductibility of PPP expenses.  Visit WDR for more details.

Regarding taxability of forgiven PPP #1 or #2 loans and deductibility of related expenses:

 

 ‘‘(i) TAX  TREATMENT .—For purposes of the Internal Revenue

Code of 1986—

(1) no amount shall be included in the gross income of

the eligible recipient by reason of forgiveness of indebtedness

described in subsection (b),

‘‘(2) no deduction shall be denied, no tax attribute shall

be reduced, and no basis increase shall be denied, by reason

of the exclusion from gross income provided by paragraph (1),

and

‘‘(3) in the case of an eligible recipient that is a partnership

or S corporation—

‘‘(A) any amount excluded from income by reason of

paragraph (1) shall be treated as tax exempt income for

purposes of sections 705 and 1366 of the Internal Revenue

Code of 1986, and

‘‘(B) except as provided by the Secretary of the

Treasury (or the Secretary’s delegate), any increase in the

adjusted basis of a partner’s interest in a partnership under

section 705 of the Internal Revenue Code of 1986 with

respect to any amount described in subparagraph (A) shall

equal the partner’s distributive share of deductions

resulting from costs giving rise to forgiveness described

in subsection (b).’’.

(2) EFFECTIVE DATE .—The amendment made by this subsection

shall apply to taxable years ending after the date of

the enactment of the CARES Act.

Regarding the reduction of loan forgiveness by EIDL advance received:

 

SEC. 333. REPEAL OF EIDL ADVANCE DEDUCTION.

(a) DEFINITIONS.—In this section—

(1) the term ‘‘covered entity’’ means an entity that receives

an advance under section 1110(e) of the CARES Act (15 U.S.C.

9009(e)), including an entity that received such an advance

before the date of enactment of this Act; and

(2) the term ‘‘covered period’’ has the meaning given the

term in section 1110(a)(1) of the CARES Act (15 U.S.C.

9009(a)(1)), as amended by section 332 of this Act.

(b) SENSE OF CONGRESS.—It is the sense of Congress that

borrowers of loans made under section 7(b)(2) of the Small Business

Act (15 U.S.C. 636(b)(2)) in response to COVID–19 during the

covered period should be made whole, without regard to whether

those borrowers are eligible for forgiveness with respect to those

loans.

(c) REPEAL.—Section 1110(e)(6) of the CARES Act (15 U.S.C.

9009(e)(6)) is repealed.

(d) EFFECTIVE DATE; APPLICABILITY.—The amendment made

by subsection (c) shall be effective as if included in the CARES

Act (Public Law 116–136; 134 Stat. 281).

2021 Federal

  Banking Holidays

 

Friday Jan. 1
Monday Jan. 18
Monday Feb. 15
Monday May 31
Monday July 5
Monday Sep. 6

Monday

Oct. 11
Thursday Nov. 11
Thursday Nov. 25
Saturday Dec. 25

 

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