SBA Loans, PPP Forgiveness… How Will This Impact Your Tax Return This Year?

Tax season is officially upon us and this year will be unlike anything we have seen before. Many businesses applied and received various loans to help sustain their operations during this pandemic. From the Paycheck Protection Program to the SBA Economic Injury Disaster Loan, the government stepped in to help by offering assistance to those who seized the opportunity to accept it.
Now comes the daunting task of understanding how to report these loans from these government supported programs onto your business tax returns. For instance, did your PPP loan get forgiven in 2020 or 2021? Did you receive full forgiveness on your PPP loan or just partial forgiveness? What do you do if your PPP loan hasn’t been forgiven at all? Did you receive an SBA EIDL grant along with the EIDL loan? These questions are enough to make your head spin, but they are important when it comes to filing your business tax return this year. Depending on what the answers are will determine how you can ensure to file your business tax return with confidence and peace of mind. We have been staying on top of the latest legislation on both the IRS and State level in order to provide sound guidance when it comes to navigating the various ways you could be inaccurately reporting these loans on your business tax return.
Don’t file your business tax return on your own.
Please give us a call Guirguis & Gibbs at (661) 209-3287. We are located at 27819 Smyth Dr. FL 2 in Valencia.