Author: Lindsey Jackson, CPA
Sunday afternoon Congress reached an agreement for the next round of COVID relief. While the text of the bill has yet to be released, the anticipated legislation is expected to include a few favorable tax provisions as well as updates to the Paycheck Protection Program (PPP). The expected provisions from this coming legislation include:
- Reinstate the ability to deduct business meals.
- Extension of the employee retention credit.
- Additional funding allocated to first and second PPP loans. Some businesses may be eligible for a second round of PPP funding.
- PPP loan recipients would be able to take tax deductions for expenses utilized for loan forgiveness.
- Additional funding allocated to the Economic Injury Disaster Loan program.
It is unclear at this time if there are any requirements that need to be met in order for PPP recipients to fully deduct expenses utilized for loan forgiveness. We are continuing to monitor the evolving relief package as the House and Senate begin the voting process today. We will be providing details on the provisions above as they become available.
Frost encourages those actively engaged in year-end tax planning to wait for the final text of the approved legislation before making changes to their tax planning strategies. While the relief package is anticipated to move quickly through the House and the Senate, it is not guaranteed.
Here at Frost, PLLC we are actively monitoring the situation and are available to help you navigate these turbulent times.
Please contact your Frost representative(s) with any questions.