January 18, 2021
Dear WZ Clients, Business Associates and Friends,
NEW YORK WILL NOT TAX FORGIVABLE PPP LOANS
Since New York “decoupled” from the federal tax regulations last March (meaning it no longer automatically follows Washington’s tax policy), New York had to separately issue their own regulations on the treatment of forgivable PPP loans.
New York tax department spokesman James Gazzle stated that New York was going to conform to the federal guidelines and not tax forgivable PPP loans. He further stated that the expenses associated with the PPP loans are deductible on the state tax returns.
If you have not already done so, if you have completed your “covered period” and spent the entire PPP loan on qualifying expenses, you should be now be determining if you qualify for forgiveness and contacting your bank or other financial institution that provided the loan about the process of applying for forgiveness. For those taxpayers whose PPP loan exceed $150,000, you can immediately apply for forgiveness. For those taxpayers whose loans were $50,000 or less, you need to wait another week before submitting the application for forgiveness as we are still waiting on the SBA to issue the new one page certification to obtain forgiveness (meaning less paperwork to submit to obtain forgiveness).
As always, WZ is here to assist in the application process to obtain forgiveness on your loans.
AS ALWAYS, WAGNER & ZWERMAN IS HERE TO ANSWER ALL OF YOUR QUESTIONS AND CONCERNS. WE ARE ALL IN THIS TOGETHER.
STAY SAFE AND HEALTHY
** IF YOU HAVE MISSED ANY PREVIOUS WZ COMMUNICATION IN REGARDS TO COVID-19, PLEASE REFER TO OUR WEBSITE