“Can you deduct business expenses? Of course. But can you deduct them if you use forgiven PPP loan money to pay for them? Until now, the debate has raged, with the IRS saying multiple times “no way, no tax deduction.”
“But finally, Congress has come to the rescue and said that the whole point of the program was to provide needed loan money for wages and other key expenses.
“The loan forgiveness was key too, saying that despite normal tax rules, if the loan is forgiven, that will not be income. Now the third piece of the puzzle is finally in place, you can still claim normal tax deductions for business expenses paid with PPP money.”
Read more at Forbes
