Small businesses who received a PPP loan have been encouraged to file for forgiveness by their banks to have the debts wiped from their books.
Currently, funds forgiven under the PPP will not be taxed, however the expenses the PPP funds were used on cannot be deducted for tax purposes.
There is still uncertainty surrounding the PPP program, with members of Congress on both sides pushing for deductibility and there is currently a proposed bill to allow small businesses to deduct those covered costs.
Ultimately, there is no immediate rush to file for forgiveness. The Senate is back in session on November 9 and as of right now, we still don’t know what will happen with any future stimulus bills. In a few more weeks the situation should become more clear.
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