PPP borrowers take note! On November 18, the IRS issued Revenue Ruling 2020-27 and Revenue Procedure 2020-51 outlining limited circumstances where deductions can be taken in 2020 for forgivable expenses. PPP borrowers and their owners need to understand their situations and possible outcomes, make year-end choices for 2020, and plan for 2021.

Tens of thousands of taxpayers worry about whether they may deduct necessary business expenses, how they should allocate the loss of deductibility between types of expenses, tax repercussions under Section 199A, and other provisions. What strategies may be used to avoid or defer taxation and help to maintain the solvency of borrower entities? This webinar will help you make sense of all the choices.

Learning Objectives:

• Recall how IRC Section 265 and the tax benefit rule may work concerning PPP borrowers and affiliates and evaluate whether the reduction of deductible expenses can be moved to 2021


• Identify if the is IRS correct in its approach and what other methods may be correct


• Identify the impact of lost deductions on Section 199A planning, interest expense planning, and other income tax calculations


• Identify S Corporation planning and shareholder basis rules


• Identify the latest PPP announcements that directly impact borrowers and their conduct


• Define a year-end planning checklist


• Determine estate and gift tax planning considerations


• Identify how to help insolvent PPP borrowers and their owners

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