Do I need to report PPP loan anywhere on my taxes?

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knightrider
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Joined: Fri Jun 06, 2014 11:20 am

Do I need to report PPP loan anywhere on my taxes?

Post by knightrider »

I am a sole-proprietor and got a $4k PPP loan last year. I just transferred money from my business to my personal checking account. Do I need to report this $4k anywhere on my taxes for 2020? I am assuming I just do my taxes as though the money never existed?
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MP123
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Re: Do I need to report PPP loan anywhere on my taxes?

Post by MP123 »

knightrider wrote: Tue Jan 12, 2021 3:04 pm I am a sole-proprietor and got a $4k PPP loan last year. I just transferred money from my business to my personal checking account. Do I need to report this $4k anywhere on my taxes for 2020? I am assuming I just do my taxes as though the money never existed?
That appears to be the case at this point. There were many changes in the Consolidated Appropriations Act 2021 that impacted taxability of PPP (favorably), I don't think the IRS has issued any guidance yet that corrects their earlier position regarding deductibility of PPP paid expenses, or clarified whether any documentation will be required with returns.

It's clear, however, that Congress did not intend this to be taxable income in any way, shape, or form.

This also seems to apply to the EIDL advance amount if you received that.
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