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The 2020 Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created the Paycheck Protection Program (PPP) allowing S corporations

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The 2020 Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created the Paycheck Protection Program (PPP) allowing S corporations and others to receive loans that may be forgiven. Is the forgiveness of PPP indebtedness taxable? Are expenses paid from PPP borrowed funds deductible? For S corporations and their shareholders, how are PPP loan forgiveness and related expenditures treated? Prepare a brief outline summarizing your answers to these questions.

Partial list of research aids:

Rev. Rul. 2021–2.

Consolidated Appropriations Act of 2021 (P.L. 116–260), § 276(a).

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The Consolidated Appropriation Act of 2021 CAA provides that the forgiveness of PPP indebtedness is …View the full answer


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South Western Federal Taxation 2023 Comprehensive Volume

South Western Federal Taxation 2023 Comprehensive Volume

ISBN: 9780357719688

46th Edition

Authors: Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young

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Question Details
Chapter # 22- S Corporations
Section: Research Problems
Problem: 3
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Question Posted: September 24, 2023 07:53:07
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