1. A church receives a PPP loan. Due to limited funds, the pastor only draws his approved housing allowance (no salary). Is the housing allowance eligible for forgiveness?
2. I have a business client (S-corporation) and there are 18 shareholders and they have sold the assets of the company and plan to dissolve the corporation and file a final return this year. They do not believe there are any outstanding liabilities, but we know there is always a possibility of something coming up that will need to be paid. Do you have any recommendation on ways to protect those on the board of directors from being stuck paying anything that might arise after the dissolution of the corporation?
3. For a couple clients, an estimated Schedule C was used to apply for the PPP loan. What happens if the actual line 31 when filed is LESS than that used to calculate the PPP loan amount when it comes to the forgiveness? Will a final Schedule C be required when requesting forgiveness?
4. I recently acquired a new client, who began a construction company in October 2019. The 2019 Schedule C (draft) showed a loss, however he had payroll in Q4 2019 as well as Q1 (through mid-March) 2020. The Q1 2020 was used to calculate the PPP loan amount. We discussed filing Form 2553 and using 1.1.2020 for the effective date for the S election and have added the shareholder on to payroll. I believe I read or heard from you, that any payroll for him would not be included when calculating forgiveness (because he showed a loss in 2019 on Schedule C). Is that accurate? What if...I filed Form 2553 to be effective when the company was formed in 2019? The shareholder took no distributions in 2019. Would his 2020 wages now be eligible for part of the forgiveness? (Yes - we'd have to ask for forgiveness because no extension was filed for 2019 Form 1120S.)
5. Have always been impressed with the Webinars and your use of technology. We are doing webinars and wondered if the software you use for the countdown prior to the webinar starting is proprietary or did you purchase it. We would like to use something like it for our webinars.
6. If a business doesn't meet the 8 week test but does meet the requirements in less than 24 weeks (maybe 12 weeks), can we file the forgiveness form at that point or do we need to wait until the 24 weeks are past? Reading the forgiveness form instructions, it sounds like we can do it any time we reach the requirements.
7. I attended the "Payroll Impacts of the CARES and families First Acts today at 1:00 pm. I have several clients that received the EIDL grant only. Can they take the Employee Retention Credit? I understand that those who received the PPP loan cannot.
8. Did I understand the webinar correctly – so even if you spent 100% or more on payroll in you covered period, if you applied for an EIDL Grant – you will end up with a loan for the amount of the grant? How does that make sense –then the grant was not helpful at all – it just changed a 100% forgiven loan (if you would have only gotten the PPP loan) into only partially forgiven.
9. I am so confused. I read where a 75% owner in an S corporation can take health insurance and retirement payments as in expense when completing the PPP forgiveness calculation. However, I have also heard that they are not allowed to take the expense to calculate the forgiveness of debt. Maybe you have answered this in another video presentation but I might have missed that..
10. Do you know if the extension applies to 2019 Calendar year 1065s that were due March 15, 2020?
11. Can an S Corp owner make a SEP contribution for their January 1-June 30 wages on June 30th and count the entire amount for the PPP loan or is the retirement contribution calculated just on their wages for the covered/alternative period?
12. Thanks for the seminar and all the hard work you put in during this pandemic. The one question that was not handled during the seminar was rents paid on buildings owned in a separate LLC or self rental as it is called. Can the business take a charge for the rent as long as it is at fair market value and supported by a lease or is it treated as if the building is in the business and can only deduct the mortgage interest.