Ask Tom Anything - March 25, 2022

Deducting PPP loan expenses plus your tax season questions answered

New paid subscriber Emily (welcome Emily!) asked the following question:

I have an S-Corp client that received a PPP Loan in 2020 for $115,000. They used the full amount for eligible payroll costs and the loan was forgiven, also in 2020.  On their 2020 tax return, we excluded the payroll costs because the expenses were paid by the PPP loan. 

Is it possible to claim these excluded 2020 payroll costs at this point?

Emily has a unique tax planning opportunity for her client in this situation.