Question

I need clarification re: my forgiven PPP Loan. 1 source says I can deduct expenses on my Schedule C paid for with the PPP,

Forum|Forum|5 years ago
May 17, 2021
1 reply
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PPP covered office rent and payroll for myself (self-employed-no employees.)

TurboTax Online

J888Author

sorry--to clarify--1 source said I can deduct Schedule C expenses like office rent, even though it was paid by by the PPP. This same source says I do not need to declare the part of the PPP used for payroll. (income for myself as a self-employed person--no employees) Another source said I cannot deduct the rent, etc.

T

ThomasM125

You can deduct all of the expenses paid from the PPP grant money. Originally, the IRS was not going the let those expenses be deductible, but that was changed early on in the tax filing season. You do not need to add the PPP money to your income on your tax return.

Money paid to yourself is not deductible, unless you report it on a W-2 form, in which case you will add that income onto your tax return as wage income.

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Critter-3

A sole prop filing a Sch C can NEVER EVER pay themselves wages reported on a W-2 so no sole prop should ever issue a W-2 with their name as the employee.