From the latest issue of “It’s Still up in the Air”:
Friday saw more guidance on PPP loans released, one week after the application for loan forgiveness finally came into the light, but even this new guidance came during a time when a couple of bills in Congress spoke to some issues with the PPP that were of even more interest to people. The Senate was considering a bill that would extend the loan forgiveness period to 16 weeks (double its current mark), while the House has potential legislation that could extend it as long as 24 weeks, as well as eliminate the rule that at least 75% of the funds had to be used on payroll for full loan forgiveness.
I don’t want to be so bold as to cast some predictions about where this is going – we’re talking about how much is still up in the air, after all – but one should take solace in the fact that there is no talk out there about making things more stringent. So, plan by the rules that are currently in place to maximize that forgiveness. That way, if any of these further bills are passed, you will only be in a spot where it then becomes easier to move to full loan forgiveness. This is similar to how I talk about tax planning – we have to plan the best we can within the rules we have. Doing that always puts you in the best position to move when the rules change, because you are already being active and engaged.
And if you want a little more on the rules that were actually released, this article gets a little more in the weeds on it. And don’t be afraid to reach out if you want to discuss how your individual situations looks under them.
Now in this time where little seems certain and good news can feel rare, I will close this week by providing some. While questions surrounding big measures like the PPP and economic stimulus payments dominated headlines and thoughts, some smaller things slipped through the cracks. One of these was the fact that CARES Act included a provision that will allow anyone, even tax filers who do not itemize deductions, to take a 2020 deduction of as much as $300 for charitable contributions.
If you have been doing some contributing without realizing this, congratulations, you’re getting a slight bonus for being a good person. And if you have not been contributing and did not realize this, go get yourself a bonus for being a good person. You know, beyond the fact that you just will feel good by doing it.
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