The Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) and Coronavirus Food Assistance Program (CFAP) — you have likely heard about or encountered these programs, and maybe even applied for them, received funds and aren’t sure the tax implications.
First, it’s important to remember that the year isn’t over yet — who knows what will come next? As accountants, we want to help you tax plan as accurately as possible and consider the best available options. The reality is that the details on how these programs will be treated are still unclear. That said, let’s break down what we know and can work with for now, starting easy and working our way to the more complicated.