PPP Sch C - Spidell


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Message Board PPP Sch C

  • This topic has 3 replies, 4 voices, and was last updated 1 week ago by Kristen Jones.
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    • #300201

      Under current California law, what is the current treatment of PPP loans received by Schedule C taxpayers with no employees?  For these taxpayers, there are no expenses to offset (assuming the money wasn’t used for rent or utilities).  I know it will be a moot point if California finally passes something, but I’m curious as to the current treatment assuming nothing passes.

      Thanks so much.

    • #300275
      Sandy Weiner

      From our February 1, 2021 email flash:

      • Schedule C PPP loan borrowers with no employees are not required to reduce their expense deductions “to the extent the borrower applied all funds to payroll.” Schedule C borrowers with no employees who use borrowed funds to pay interest, rent, or utilities would be required to reduce these deductions in an amount equal to the expenses paid with such funds.


    • #301550
      Monty Lee

      Does AB80 adoption change this conclusion?  Are rental reimbursements for OIH paid to S corp shareholder “rental PPP expenses”?

    • #301805
      Kristen Jones

      On the SCorp self rental, it is includable for PPP forgiveness, but only if the practice of  SC paying the SH rent was established prior to 2/15/20.

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