Talking with TaxSpeaker: Video 96
1. I am reviewing the Loan/Forgiveness calculator for the PPP loan that the bank provided. It states that the loan forgiveness is not taxable and it is also not an expense in the Client's books. Does this mean there is no income tax deduction for expenses paid with PPP loan proceeds that were forgiven?
2. Per the update you just emailed it states 1st qtr(June 15) estimated pmts due 7/15. I was a little confused. 1st qtr are due 4/15 extended to July 15 so was this to say 2nd qtr(June 15) extended to July?
3. I just heard from a client who is a president at a local credit union – she had a webinar that said the $10k grants are going to be $1000/employee up to $10,000 – is that correct? As when I helped clients fill them out – sometimes the # of ee were 0 on Jan 31 as they work more seasonally –so they are hiring back employees now. Or for Self Employed that have no employees –just themselves – should that be answered 1? even so does that mean SE will only get $1000???
4. Can you please tell me if Tax Speaker still taking the position that the QBI for a Shareholder's SE Health Insurance Premium, reported on their W-2, is not required to be subtracted as an adjustment to allowable QBI at the Shareholder level?
5. Per the attached SBA 2020-0015, SBA is saying forgiveness is based on net pay, not gross wages. (d)(1)(A) of the Act – Limits on forgiveness – says “total payroll costs incurred”. Your opinion? Additionally the word “incurred” suggests it’s not when paid, but when the work is done. Your opinion?
6. Is it possible to use the New "EIP" tax form (aka-"simple return") which is now available to get a client into the IRS working system who has not filed a return for 5 years-- but is working on gathering data-- He has no current address and banking information in the IRS system. It would be used strictly to get the data needed to the IRS for the $1200 check to be direct deposit OR mailed to him!! Is this possible to use it for this reason to help this type of "delinquent" client>?
7. Bob, I keep hearing you say that farmers don't qualify for the PPP program. I believe that is correct for the EIDL, but nowhere do I see that farmers are excluded from the PPP. What am I missing?
8. Can partners in a service industry (Doctors) who file a 1065 return use their SE income from their K-1 in the PPP loan application as payroll costs in addition to the employees of the practice which have W-2s? Or are the partners to file separate PPP applications as a self employed person.
9. During the 8 week period after funding, how do you determine the includible portion of SE income during this period for a member or partner who receives SE income but not guaranteed payments? Is it important that they receive distributions during this 8 week period?
10. I understand that the portion of the loan that is forgiven is not considered income. But am I correct that you are not allowed to deduct the payroll associated with the forgiveness as an expense?
11. The SBA Massachusetts District Office posted an informational “guide” about the disaster programs provided by the SBA. The Q&A seems to tie the grants to # of employees at $1000 per employee up to 10 employees. This seems to fly in the face of what Congress passed with this restriction. Is this correct?
12. I am having more success with banks paying the 1% fee if I provide an engagement letter signed by the client stating we were hired as their “agent” in assisting and providing information for the PPP application including the documentation necessary for forgiveness by SBA. I am wondering if you have any already drafted that I could use as an example.
13. ARE YOU INTERESTED IN FILING A CLASS ACTION SUIT WITH ME AGAINST THE BANKS FOR VIOLATING 13cfr PART120 BY NOT PAYING US THE 1% AGENT FEE?
14. a lender got back to me on Agent Fee on the PPP loans. They said that the lender will pay but SBA has limited to 1% on the PPP loans under $350K and .5% 350K - 2Million. is that correct. This one was for 28,300.00 loan and said that I would get a check 6 days after closing.
15. On the SBA loan application for PPP, where and how do we report the employer contributions to defined-benefit or defined-contribution retirement plans? We do not see this addressed on any instructions or guidance information. Do you have any insight??