CPAR Taxes

CPAR - 2021/January, Seg 2 - PPP Loan Forgiveness, Expense Deductibility and More

In April 2020, the IRS issued Notice 2020-32 that took the position that expenses leading to the obligation to repay a Paycheck Protection Program (PPP) loan being forgiven could not be deducted. In the ruling, the IRS spends almost the entire notice outlining a justification for denial of the deduction. The basis of such justification is that treating the forgiveness income as tax-exempt once CARES Act Section 1106(i) is considered is triggering Internal Revenue Code section 265(a)(1), which bars a deduction for expenses related to tax-exempt income. Perhaps the hottest topic for many is the Paycheck Protection Program. The application for loans ended in August, but we are currently dealing with many PPP issues. Barbara Weltman, president of Big Ideas for Small Business, gives us updates from the SBA in regards to PPP loans..

Learning Objectives:

  • Identify the concerns on expense deductibility and the two sets of available guidance;
  • Understand the safe harbor eligibility and employee retention credit requirements;
  • Determine rental loss allowance deduction eligibility; and
  • Understand the impact of termination of a 403(b) plan.

Prerequisites/Advanced Preparation:

Work experience in tax planning or tax compliance, or an introductory course in taxation.

Speaker / Author:

Barbara Weltman, Big Ideas for Small Business


Price (USD)

Standard: $69.90


Course Code : CPAR1492-FM

Release Date : 01/30/2021
Expire Date : 03/22/2022
Credits :
CPE 2.00
QAS 2.00

Length : 1hr 40min
Course Level : Update
Course Type : Self-Study
Passing Grade : 70%
Format Type : eLearning
Mobile Compatible
Field Of Study : Taxes

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