No deduction is allowed expenses incurred with PPP

Important IRS Update!
 
The IRS published Notice 2020-32 indicating that expenses paid to qualify for loan forgiveness under the Paycheck Protection Program (such as payroll costs, rent, utilities, and interest on mortgage obligations) will not be deductible. This seems contrary to the intent of the original legislation, and it is possible the next COVID-19 bill (assuming there is one) could clarify that such expenses are, in fact, deductible. At this time, businesses should prepare for these amounts to be non-deductible. We will be sure to update you if this changes.

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