Business owners expecting paycheck protection loan forgiveness can’t deduct expenses
The Internal Revenue Service (IRS) headquarters in Washington, D.C.Janhvi Bhojwani | CNBCEntrepreneurs who took a forgivable loan this year can't write off certain expenses on their taxes if they expect the debt will be forgiven, according to the IRS and Treasury Department.The two agencies issued guidance Wednesday on the Paycheck Protection Program – an emergency line of funding for small businesses established by the CARES Act.Generally, applicants are eligible for loan forgiveness if they use at least 60% of the proceeds on payroll costs. Businesses that fall short may be eligible for partial forgiveness.Though the program generated plenty of interest – more than 5 million loans were approved, accounting for $ 525 billion – questions have lingered on whether small businesses would be ...