Question: When a Paycheck Protection Program loan is forgiven: A. The taxpayer will not receive a Form 1099-C, Cancellation of Debt, for the amount of the

When a Paycheck Protection Program loan is forgiven:

A. The taxpayer will not receive a Form 1099-C, Cancellation of Debt, for the amount of the forgiven PPP loan, but they will have to include the amount in their gross business income and pay tax on it.

B. The taxpayer will receive a Form 1099-C, Cancellation of Debt, for the amount of the forgiven PPP loan and will pay tax on the amount.

C.The taxpayer will receive a Form 1099-C, Cancellation of Debt, for the amount of the forgiven PPP loan, but will apply for an exclusion so they do not have to pay any tax on the amount.

D. The taxpayer will not receive a Form 1099-C, Cancellation of Debt, for the amount of the forgiven PPP loan, and will not have to pay tax on the amount forgiven.

Step by Step Solution

★★★★★

3.37 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The detailed answer for the above question is provided ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Is it possible for a taxpayer to receive rental income that is not subject to taxation? Explain.

When taxpayers file a tax return, they will either pay an additional amount or receive a refund of excess taxes paid. Briefly explain how this settling up process works. Why might a taxpayer pay too...

For what taxable income would a taxpayer have to pay $5,975.00 in taxes? Explain your reasoning?

Question 32 of 35. When a Paycheck Protection Program loan is forgiven: A. The taxpayer will not receive a Form 1099-C, Cancellation of Debt, for the amount of the forgiven PPP loan, but they will...

follow up Question 32 of 35. When a Paycheck Protection Program loan is forgiven: The taxpayer will not receive a Form 1099-C, Cancellation of Debt, for the amount of the forgiven PPP loan, but they...

Question 29 of 35. Choose the response that correctly describes the tax consequences for a recipient of a Paycheck Protection Program ( loan who had their debt forgiven. They will: Not receive a...

Question 29 of 35 . Choose the response that correctly describes the tax consequences for a recipient of a Paycheck Protection Program (PPP) loan who had their debt forgiven. They wilt: Not receive 8...

Hey i need help with a final semester project that i am doing where i was trying to do it by my self but could not do and this final assignmentis due by the first week of december. When doing the...

Prepare the couples federal income tax return, Form 1040 for the year ended December 31, 2021 , plus any additional schedules necessary. Forms are available at the IRS website Links to an external...

This is a tax a assignment. I usually give tips up to $50 based in the accuracy of your answer and the grade I get from my teacher. please do your best lionelmerrcc747 Accounting 3020 Summer 2016 -...

The current stock price for a company is $45 per share, and there are 7 million shares outstanding. The beta for this firms stock is 1.3, the risk-free rate is 4.4, and the expected market risk...

Calculate the pH of an aqueous solution that is 0.158 mol/L HCio and 0.099 mol/L NaC10. The K, for HCIO is 2.9 x 10.

Which types of organizations are involved in the victims' rights movement?

In each of 20 recent and consecutive years, 10,000 people were randomly selected and the numbers of births they generated were found, with the results given below. How might the results be explained?...

In 2019, Ben purchases and places in service a new auto for his business. The auto costs $57,000 and will be used 60 percent for business. Assuming the half-year convention applies and Ben elects out...

In a recent year, 73% of first-year college students responding to a national survey identified being very well-off financially as an important personal goal. A state university finds that 132 of an...

Select a property of interest to you, or to an industry contact, for which market research would be interesting. Examine the property, collect what information is available about it, and then write a...

Many people like to ride roller coasters. Amusement parks try to increase attendance by building exciting new coasters. The following table displays data on several roller coasters that were opened...

Ricola Brothers purchased $2,000,000 of 5.00% face interest bonds of Astro Corporation for a premium, $2,140,450, on January 1, 2018. These bonds pay interest on June 30 and December 31 each year....

Do you agree with the proposal of the Competitions and Market Authority in the United Kingdom that the Big Four firms should be split operationally so that audit and non audit services are conducted...

Milton Manufacturing Company produces a variety of textiles for distribution to wholesale manufacturers of clothing products. The companys primary operations are located in Long Island City, New...

Jeremy Strong, CPA was recently hired as the new CFO of Image ware Consolidated (IC), a small publicly owned company. This is Jeremys first job outside of public accounting, leaving Deloitte after 10...

In which of the following situations is an information asymmetry likely to cause problems? a. Parents know more than their children about how to write a good college application. b. People who book...

In which of the following situations is an information asymmetry likely to cause problems? a. Cab drivers know the shortest route to any destination better than their passengers do. b. Managers cant...

Walter wants to signal his devotion to Emily. He has $75 and is considering a bracelet for Emily or a tattoo for himself of her name. Which is the more effective \ signal?