Jump to content
ATX Community

PA treatment of forgiven PPP loan proceeds


MDCPA

Recommended Posts

Per PA Dept of Revenue Website:

Taxability of Paycheck Protection Plan Loans

"Paycheck Protection Plan loans used to pay business expenses during the COVID-19 pandemic that are subsequently forgiven by the lender will constitute as taxable income for Pennsylvania personal income tax purposes. The business can deduct proceeds from the forgiven loan that are used to cover ordinary, necessary and reasonable business expenses related to that income."

"For corporate net income tax, Pennsylvania taxable income is based upon federal taxable income. Pennsylvania law does not include an add back to or deduction from federal taxable income for forgiveness of a Paycheck Protection Plan loan."

_____________________________________________________________________________________________________________________________________________________________________

Is this saying that corporations will not have any addback for the forgiven loan and will also get to deduct expenses paid with forgiven PPP loans (since based on federal taxable income) but self employed (sch C filers) will have taxable income for the forgiven loans?  I know the expenses will be deductible if paid from the forgiven PPP loan but this isn't the same treatment as the corps get?

  • Like 1
  • Thanks 1
Link to comment
Share on other sites

  • 4 weeks later...

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...