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Cash > Deductions

The House passed a bill in the middle of May which made these expenses deductible. The Senate Banking Cmte introduced a bill to make these expenses deductible two months ago, but it has never been brought up for the full Senate to vote on it.

There is a move in the Senate to make the expenses paid by the PPP loans deductible. Apparently, the senators did not know the tax rules they passed and when Treasury issued guidance based on the tax rules as written and applying the rules that have been in effect since the tax law was born, these senators were shocked that Treasury did not know that the law they just passed should be interpreted the way they intended it and not the way they wrote it. (much sarcasm intended). I think the only way to do it is to make it a credit for 2020, like they did with the EIP they gave to the individuals. But they may be able to write something else to get them there. Tom Modesto, CA