Thanks to 老葡京手机app Supervisor Tom Hudson for developing the following article.
4月14日, the Small Business Administration (SBA) released additional guidance that provided more information about the implementation of the 薪水保障计划 (PPP) for self-employed taxpayers.
以前, it was not explicitly stated that taxpayers who file a Schedule C were included in the program although many interpretations of the SBA’s language indicated that they were eligible. 的 SBA did confirm through the most recent guidance that a taxpayer who files a Schedule C is eligible for the PPP program.
进一步, the SBA clarified that partnerships should apply for PPP loans at the partnership level 和 include the income of the partners at the entity level, as opposed to each partner applying at the individual level. This was intended to reduce the number of applications 和 reduce confusion. 为合作伙伴, the self-employment income of each general active partner may be reported as a payroll cost, 还是以100美元为准,年化限额.
的 SBA clarified the logic behind how a schedule C filer is supposed to calculate their allowable loan amount under the PPP. 的 guidance has instructed Schedule C filers to use their Schedule C line 31 net profit amount from the 2019 Schedule C as the basis for the payroll cost calculation in the PPP.
的 SBA also clarified that the loan forgiveness process for Schedule C filers will consider an “owner compensation replacement” component alongside the other requirements to qualify for loan forgiveness. This is calculated by multiplying 2019’s net profit from Schedule C by 8/52s (8 weeks divided by 52 weeks in a year). This is the amount that will be included in the loan forgiveness calculation 和 is specific to Schedule C filers.
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Whether or not an entity has employees, the entity must submit evidence of business rent, business mortgage interest payments on real or personal property, or business utility payments during the covered period if loan proceeds were used for those purposes. 的 2019表格1040附表C that was provided at the time of the PPP loan application must be used to determine the amount of net profit allocated to the owner for the eight-week covered period.
简而言之, the guidance released was in line with 老葡京手机app’s expectations 和 provided updated instructions as to how the program will function for self-employed business owners.
Please contact 老葡京手机app Tax Practice Director Richard Morris using our 网上联络表格 了解更多信息.
委员,葡京会手机app下载 & 老葡京手机app(老葡京手机app) is a professional services firm delivering tax, accounting 和 business advisory expertise throughout the Mid-Atlantic region from offices in 马里兰州贝塞斯达 和 华盛顿特区.
