Michael Blanski with Graff, Ballauer & Blanski P.C. has had a very busy start to 2020. Although the feds have extended the deadline to file your federal taxes, he has been a key component for folks to apply for the Payroll Protection Program for forgiveable loans.
Michael spoke about the ramifications and tax changes for the newest tax law that was passed. The new tax act has many changes in the fact that there are still many CPAs and banks who are still attempting to find out the best practices for filing.
Some of the most frequent questions that he has been fielding is the amount of the loan that is able to be forgiven. There are many formulas, as Michael mentioned, that will decide how much of the loan will be forgiven. His advice is to consider the loan as a true loan, and not bank on the fact that all of the loan will be forgiven.
Many banks also have numerous ways of interpretations based on the forgiveness of the loan and whether or not the client will benefit. This is a very vague scenario, and may be causing more harm than good in the future. Michael mentioned that if you have the loan, the payroll portion of forgiveness is only up to 75%, the remainder should be used for rent and other qualified expenses.
For more information on whether or not your company qualifies for the PPP program, contact Michael by visiting http://www.gbbcpa.com/